White House announces 35% tariff on Canadian imports

Increased tariff effective August 1, 2025

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August 1, 2025

The White House on July 31, 2025, announced that President Trump signed an executive order to increase the tariff on Canadian imports to 35% (from 25%), effective August 1, 2025.

According to the White House fact sheet (July 31, 2025), this action is part of efforts to address the national emergency declared under the International Emergency Economic Powers Act (IEEPA) concerning the public health crisis caused by fentanyl and other illicit drugs entering the United States from Canada.

Goods qualifying for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA) continue to remain exempt from the IEEPA Canada tariffs; goods transshipped to evade the 35% tariff will instead be subject to a transshipment tariff of 40%.

Read related CBP guidance—CSMS # 65798609 (July 31, 2025)

For more information, contact a professional with KPMG Trade & Customs services:

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@pmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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