U.S. President Donald Trump signed an executive order on 31 July raising tariffs on Canadian goods to 35% from the previous 25%, the White House said. The higher rate will apply to imports entering the United States starting 1 August. According to a White House fact sheet, the measure is a response to Canada’s “continued inaction and retaliation,” including what Washington calls insufficient efforts to stem illicit drug flows. Goods that comply with the United States-Mexico-Canada Agreement will remain exempt from the new duty. The move formalises a 11 July threat delivered in a letter to Prime Minister Mark Carney and intensifies a dispute with America’s second-largest trading partner, which had already faced a 25% levy since March. Trump’s order also sets so-called reciprocal tariff rates of between 15% and 40% on more than 70 other countries, underscoring the administration’s wider effort to reset U.S. trade relations ahead of the president’s self-imposed early-August deadline for new deals.