July 31, 2025
RED FM News Desk
U.S. President Donald Trump has signed an executive order to increase tariffs on Canadian goods to 35%. This hike follows a previous tariff rate of 25% that had been in place since March. The new rate is set to take effect on Friday.
In a statement issued by the White House, officials said Canada has not cooperated in stopping the flow of fentanyl and other illicit drugs into the United States. The statement also noted that Canada has taken retaliatory steps against the U.S. in response to actions taken by the Trump administration to address what it calls an “unusual and extraordinary threat.”
However, trade that falls under the Canada-U.S.-Mexico Agreement (CUSMA) will remain exempt from these tariffs. This means approximately 90% of Canadian exports to the U.S. will still be allowed to enter tariff-free.
Trump has also imposed increased tariffs on many other countries. In a separate executive order, he authorized tariff rates ranging from 15% to 41% on dozens of countries across the world.
Mexico, however, has been granted a 90-day extension, allowing it to continue under the current tariff regime.
On the issue of Palestine, Trump commented on Canada’s recent announcement recognizing Palestine as a state. He said he had not spoken with Canadian Prime Minister Mark Carney that day. When asked whether Canada’s stance on Palestine would affect trade negotiations, Trump replied that while he didn’t like what Canada said, it was their opinion. He added that it was not a deal-breaker.
Ontario Premier Doug Ford expressed serious concern over the tariff increase. He urged Ottawa to retaliate with a 50% tariff on American steel and aluminum, stating that now is the time for Canada to stand firm. Ford emphasized that Canada should not settle for anything less than a fair deal.
Meanwhile, Canada’s approach has been cautious. The Canadian trade delegation is currently in Washington, though officials have not disclosed who they are meeting with. Prime Minister Carney and other officials have repeatedly said a deal is unlikely in the immediate future and have downplayed the urgency, citing the exemption that allows most Canadian exports to continue entering the U.S. tariff-free.
U.S. officials also commented on the situation. White House Press Secretary Karoline Leavitt stated that countries without agreements would be contacted by midnight. U.S. Commerce Secretary Howard Lutnick said he does not believe President Trump will back down from the increased tariffs, emphasizing that Canada is one of the few nations that responded with retaliatory measures.
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