U.S. President Donald Trump has signed an executive order increasing tariffs on Canada from 25 percent to 35 percent, effective August 1. This action is in response to Canada's alleged failure to curb fentanyl and other illicit drugs, and its retaliation against previous U.S. actions.

• The new tariff applies to most Canadian imports, while goods qualifying under USMCA remain exempt.
• The White House stated this measure is "necessary and appropriate to protect American lives and the national security."
• Canada imposed 25-percent tariffs on U.S. vehicles in April as countermeasures.