Donald Trump has made the not-so neighbourly decision to increase tariffs on Canada from 25 per cent to 35 per cent.
This new rate takes effect from today (August 1), although the White House confirmed goods covered under the 2020 United States-Mexico-Canada Agreement will be exempt from this.
The reason for the increase, the US president has said, is "the public health crisis caused by fentanyl and illicit drugs flowing across the northern border into the United States”.
"Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President’s actions to address this unusual and extraordinary threat to the United States," the White House says on its website announcing the news.
"In response to Canada’s continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25% to 35% to effectively address the existing emergency."
However, that being said, another reason appears to be the country's stance to recognise the state of Palestine.
"I didn't like what they said, but you know, that's their opinion," Trump said on the matter. "Not a deal-breaker. But we haven't spoken to Canada today. He's called and we'll see."
But he appeared to change his tune as Trump took to his platform, Truth Social, to express his dismay and how it would make it "very hard" for a trade deal to be reached as a result.
“Wow! Canada has just announced that it is backing statehood for Palestine,” Trump wrote early Thursday morning. “That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!”
How has Canada responded?
Canadian prime minister Mark Carney said he was "disappointed" with Trump's decision to increase tariffs on his country.
"While the Canadian government is disappointed by this action, we remain committed to [the Canada-U.S.-Mexico Agreement], which is the world's second-largest free trade agreement by trading volume," he said in a statement.
"The U.S. application of CUSMA means that the U.S. average tariff rate on Canadian goods remains one of its lowest for all of its trading partners. Other sectors of our economy — including lumber, steel, aluminum and automobiles — are, however, heavily impacted by U.S. duties and tariffs."
On social media, Canadians have slammed Trump's "classic bully move" and expressed a keenness to seek trade opportunities elsewhere rather than their neighbours.
"This is a classic bully move. Canadians shouldn’t panic. It was expected. We need to focus on reducing our reliance on the American market. That means diversifying our trade relationships abroad and bolstering internal trade," one person said.
A second person added, "At this point, the best deal for Canada is no deal. Diversify free and fair trade with other countries and maximize internal trade, as quickly as humanly possible and let the US tax its people via tariffs on its imports as it sees fit. The sky will not fall, the sun will shine."
"PM Carney appears to be the only democratic leader willing to stand up to President Trump’s trade tariff bullying tactics. Canada’s distinct advantage is that we have the natural resources the U.S. needs. I hope the PM holds firm & only agrees to a deal that is good for Canada," a third person posted.
Mayor of the City of Mississauga, Carolyn Parrish, shared: "Canada comes of age! 35% tariffs imposed by Trump as of midnight tonight. Time to grow up! Batten down the hatches and expand to new markets. Trade east west. Remove restrictions in our own country. Refine our own oil! Buy nothing from USA. Thank you Trump for a new tomorrow!"
"CANADA WON’T BACK DOWN! Buy Canadian and support Canadian workers and businesses as the USA TARIFFS CANADA harder than any country. We will never become the 51 STATE!" someone else insisted.
CANADA WON’T BACK DOWN!Buy Canadian and support Canadian workers and businesses as the USA TARIFFS CANADA harder than any country. We will never become the 51 STATE! www.cbc.ca/news/canada/...
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— Spudislander45 🇨🇦❤️🌎💪🫡 (@spudislander45.bsky.social) 31 July 2025 at 17:33
Elsewhere, Trump’s tariffs are harming US chocolate firms in one unfortunate way, and One essential item may get a 200 per cent tariff thanks to Trump.
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