United States President Donald Trump has signed an executive order that would impose new tariffs, increasing the tariff on Canada from 25% to 35% beginning on Friday, August 1, because the U.S. neighbor to the north ‘failed to help curb the imports of fentanyl and other illicit drugs.’
The White House noted that Trump signed an executive order on Thursday to increase the tariff in an effort to hold Canada accountable for its role in the flow of illicit drugs into the U.S.
Additionally, Trump signed another executive order on Thursday, July 31, to modify the reciprocal tariff rates for some countries to further address the United States’ trade deficits.
The action reflects Trump’s efforts to protect the U.S. from foreign threats to national security and the economy by securing "fair, balanced and reciprocal trade relationships," the White House said.
The president announced an additional 10% tariff on all countries, though he also announced higher tariffs for countries the U.S. has large trade deficits with, on April 2, and they became effective on April 9.
Trump and his team have since made several trade deals with several countries.
For instance, the U.S. struck a deal with the European Union in which the EU agreed to purchase $750 billion in U.S. energy and make new investments of $600 billion by 2028. The EU also agreed to accept a 15% tariff rate.
The U.S. also made a deal with Japan, which agreed to invest $550 billion in the U.S. to rebuild and expand core American industries. Japan also agreed to further its own market to U.S. exports, and like the EU, Japan agreed to pay a baseline 15% tariff rate.
A list of modified reciprocal tariffs from the White House shows that Syria will face a 41% tariff, while Myanmar and Laos will be charged a 40% tariff.
Switzerland will be required to pay a 39% tariff; Serbia and Iraq will be charged a 35% tariff; and Algeria, Bosnia and Herzegovina, Lybia, and South Africa will be charged a 30% tariff.
The White House said Trump is using tariffs as "a necessary and powerful tool to put America first after many years of unsubstantiated trade deficits that threaten our economy and national security."
One threat to the U.S. is the flow of fentanyl from both Mexico and Canada, which Trump addressed with the 35% tariff on Canada.
Earlier this month, Trump threatened to impose a 35% tariff on Canadian goods on Aug. 1, after accusing Canada of failing to stop the flow of fentanyl into the country, and instead retaliating with its own tariffs.
According to U.S. Customs and Border Protection (CBP), 74 pounds of fentanyl have been seized at the northern border in fiscal year 2025.
The White House said Mexican cartels are operating fentanyl- and nitazene-synthesis labs in Canada.
The Trump administration also claimed Canada-based drug trafficking organizations maintain "super labs," in rural and dense areas in western Canada. Some of the labs can produce 44 to 66 pounds of fentanyl per week.
