Trump raises tariffs on Canada to 35% with no trade deal in sight

The White House said Trump was raising the tariff rate because Canada "has failed to cooperate in curbing the ongoing flood of fentanyl" and imposed retaliatory tariffs.

U.S. President Donald Trump signed an executive order Thursday that will raise his tariffs on Canada to 35 per cent starting midnight Friday, a deadline he set for a new trade deal that has failed to materialize.

Trump also signed an executive order that will have new tariffs on a wide swath of U.S. trading partners to go into effect in seven days. The order keeps his “reciprocal” 10 per cent baseline tariff rate in place with higher rates for other countries that have yet to sign a new trade deal with the U.S.

The White House said Trump was raising the tariff rate because Canada “has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs” into the U.S., as well as Canada’s retaliatory tariffs on American goods.

“In response to Canada’s continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25 per cent to 35 per cent to effectively address the existing emergency,” the White House said in a statement.

Goods traded under the Canada-United States-Mexico Agreement on free trade (CUSMA) will continue to be exempted from the higher tariff, the White House confirmed. It added goods that are transshipped through other countries to avoid the 35 per cent rate will instead be charged a tariff of 40 per cent.

Trump had earlier Thursday suggested many of the grievances he has repeatedly voiced about Canada, including its supply management system for the dairy industry and military spending, remain.

“They have to pay a fair rate,” he told reporters at the White House. “They’ve been very, very poorly led, and all we want is fairness for our country.

“We haven’t spoken to Canada today. He’s called, and we’ll see,” he added, without specifying who he was referring to.