President Donald Trump signed an executive order late Thursday evening, raising the tariff on Canadian imports to 35% effective at midnight, while granting Mexico another 90 days to negotiate a trade deal with the United States.
The actions come as the August 1 deadline arrived for countries with trade deficits with the United States to reach new trade agreements, but Trump said they won’t take effect until August 7 for most nations. In a Truth Social post, Trump praised ongoing talks with Mexican President Claudia Sheinbaum, while he ripped Canada for failing to crack down on drug trafficking. Trump also said that he would not raise tariffs on Mexico beyond current levels for 90 days.
“I have just concluded a telephone conversation with the President of Mexico, Claudia Sheinbaum, which was very successful in that, more and more, we are getting to know and understand each other. The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border,” Trump posted on Truth Social Thursday night. “We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time.”
The current deal hits Mexico, America’s top trading partner, with a 25% tariff imposed because of fentanyl trafficking over the southern U.S. border, a 25% tariff on vehicles, and a 50% tariff on steel, aluminum, and copper.
“Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many. We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer,” Trump added. “There will be continued cooperation on the Border as it relates to all aspects of Security, including Drugs, Drug Distribution, and Illegal Immigration into the United States.”
Trump said that Vice President JD Vance, Treasury Secretary Scott Bessent, Secretary of State Marco Rubio, and other top administration officials were all present for the call with Mexico.
In Trump’s executive order, Trump justified raising the tariff on Canadian goods, citing the country’s “failure to devote satisfactory resources to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug or human traffickers, criminals at large, and illicit drugs.”
That announcement came after Trump said that it would be difficult to make a trade deal with Canada if it moved forward with a plan from Canadian Prime Minister Mark Carney to recognize a Palestinian state.
“Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!” Trump said.
More than a dozen countries are facing tariffs ranging from 19% to 41% when they take effect on August 7. All countries across the board will pay a baseline 10% tariff under the White House plan. Separate negotiations with China, another one of America’s largest trading partners, are ongoing.
