On July 10, 2025, U.S. President Trump sent a letter to Mark Carney, the Prime Minister of Canada, outlining the details of their current trade relationship and upcoming tariffs.

In the letter, President Trump states that beginning on August 1, 2025, the U.S. will charge Canada a tariff of 35% on Canadian products sent into the United States, separate from all sectoral tariffs, unless companies in Canada choose to build or manufacture products within the United States. Any goods that are transshipped to avoid the higher tariff, will be subject to the higher tariff amount. If Canada chooses to impose retaliatory tariffs, then their selected rate would be added onto the 35% U.S. tariff.

While the letter does not mention an exemption for USMCA eligible goods, the Wall Street Journal is reporting “…an exemption for goods that comply with the nations’ free-trade agreement, the U.S.-Mexico-Canada Agreement, would still apply, a White House official said, stressing that could change.”

A.N. Deringer, Inc. will continue to monitor CBP’s messaging service and the White House for official notifications.

Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.