U.S. President Donald Trump announced on July 10, 2025, the imposition of a 35% tariff on Canadian imports effective August 1, 2025. The tariff targets Canadian goods amid concerns over fentanyl trafficking into the United States, which Trump cited as a primary reason for the measure. Trump indicated that the tariff rate could be adjusted if Canada cooperates in curbing the fentanyl flow or removes trade barriers. The announcement included a warning that retaliatory actions by Canada could lead to even higher tariffs. Canadian Prime Minister Mark Carney stated that efforts are underway to address the fentanyl issue. Notably, goods covered under the United States-Mexico-Canada Agreement (USMCA) remain exempt from these tariffs. Trump communicated these points in a letter to Prime Minister Carney, emphasizing the link between trade policy and narcotics control.