supplychainreport | August 1, 2025

The White House announced Thursday that the United States will raise tariffs on select Canadian imports from 25 percent to 35 percent, effective Friday.

According to the administration, goods covered under the 2020 United States-Mexico-Canada Agreement (USMCA) will remain exempt from the new tariff rate.

The tariff increase was disclosed just hours before a broader set of trade adjustments were scheduled to take effect across several countries. Canada, one of the United States’ largest trading partners, is among those affected by the changes.

A White House fact sheet stated that the measure follows ongoing concerns regarding bilateral cooperation on cross-border issues and recent policy developments that have impacted trade negotiations.

Earlier this year, a 25 percent tariff was introduced on imports from both Mexico and Canada. The current escalation to 35 percent for Canada reflects continued concerns raised by the administration over regulatory and diplomatic matters.

The U.S. has also noted that certain foreign policy decisions by Canada have contributed to delays in finalizing new trade agreements. Despite heightened tensions, Canadian officials have emphasized the importance of strong bilateral relations and affirmed their commitment to collaboration.

The tariff adjustment marks a continuation of the administration’s efforts to recalibrate trade relationships and address broader economic and policy priorities.

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