US to impose 35% tariffs on Canadian imports from Aug 1; agriculture, metals in focus

The US will start charging 35% tariffs on Canadian imports from Aug. 1, a move that impacts exports of agricultural products, metals and other commodities from Canada.

The 35% tariffs will be charged on all Canadian products sent to the US, and will be separate from sectoral tariffs, US President Donald Trump said in a letter sent to Canadian Prime Minister Mark Carney. The letter was revealed in a July 10 post on Truth Social, Trump's social media platform.

These tariffs are not expected to affect goods that come under the US-Mexico-Canada trade agreement, according to media reports. The USMCA agreement was finalized by the Trump administration in 2020.

Mirroring his other letters sent recently to several countries, Trump said any "good transshipped to evade this higher tariff will be subjected to that higher tariff."

Canada, one of the largest US trading partners, is a key supplier of aluminum, steel, lithium, copper, natural gas, beef, iron ore, and other commodities.

The US has raised its tariff charges on aluminum, steel, and most recently, copper, making it difficult for Canadian suppliers to access US markets.

In metals, the Canadian Mining Association flagged that the copper tariffs could affect midstream copper participants based in Quebec.

In the proteins sector, cracks have started appearing in Canadian supplies after the country emerged as the only major exporter to see a decline in beef exports to the US during the 90-day pause announced earlier.

The latest tariff announcement comes after recent trade talks between the US and Canada appeared to break down, a development that followed Trump's move in March to launch tariffs for the first time against Canada.

In his latest letter to Carney, Trump said Canada was charging "extraordinary" tariffs on US agricultural products, mostly dairy products, and cited the growing trade deficit between the two countries as a "major threat" to the US economy and national security.

He said he would be open to adjusting these tariffs if Canada would work to stop "the flow of fentanyl" into the US.