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January 1, Trump Imposes New Tariffs on Canadian Imports

Last night, President Trump made a big move. He signed an order that raises taxes, called tariffs, on things we buy from Canada to 35%. That change starts right at midnight. But he gave Mexico a little more time—another 90 days—to make a deal with us.
Trump’s tough talk comes because we want better trade deals. Countries that owe us more than we owe them had until August 1 to make new deals. But Trump said the changes won’t actually start until August 7 for most places. On Truth Social, Trump said talks with Mexico’s President Claudia Sheinbaum are going well, but he called out Canada for not stopping drug problems.
“I just had a great chat with President Sheinbaum of Mexico. We’re figuring out how to work together better. It’s a bit tricky with Mexico because of all the issues and good things at the border,” Trump shared online. “We’re giving Mexico 90 more days with the same deal we’ve had lately.”
Right now, Mexico, our top trading friend, pays a 25% tariff because of the bad stuff happening with drugs crossing our border. Cars have a 25% tariff, and things like steel and copper have a 50% tariff.
“Plus, Mexico is getting rid of a bunch of other trade barriers, which is good,” Trump added. “We’ll keep talking with Mexico to try and make a big trade deal in the next 90 days. We’re all working together on keeping drugs and illegal stuff out of the U.S.”
Vice President JD Vance, Treasury Secretary Scott Bessent, Secretary of State Marco Rubio, and others were all in the meeting with Mexico.
For Canada, Trump said the new tariffs are because they aren’t doing enough to stop drugs and bad happenings.
Trump wasn’t happy when Canada said it might support a Palestinian state. “Wow, Canada is backing Palestine. That makes making a trade deal tough. Oh Canada!” Trump said.
Many countries will have to pay new tariffs from 19% to 41% starting August 7. Every country will have to pay at least a 10% tariff. We’re also still talking with China, another big trade partner.
Wyatt Matters!
President Trump’s decision to raise tariffs on Canadian goods to 35% is a big move that will affect many people. Tariffs make things we buy from other countries more expensive, which might mean that people in the U.S. will have to pay more for things like maple syrup and snow skis that come from Canada. The change is supposed to encourage countries to make better deals with the U.S., but it might also make some things cost more for families here.
For Mexico, Trump has taken a different approach and is giving them more time to come up with a deal. Mexico is an important trading partner, and we get many things from them, like cars. Right now, cars and other items from Mexico have high tariffs, but President Trump is trying to work out a new agreement in the next 90 days. It seems the U.S. and Mexico need to work together to solve problems at the border, and keeping talks open could help both countries.
Other countries will also have to deal with the new rules starting on August 7. Presidents make decisions like this to protect our country and help it to be strong. However, it is important to balance those goals with fair trade so that everyone benefits. Changing tariffs and deals can be challenging, but President Trump’s plan shows that he is focused on making sure the U.S. gets good deals with its trading partners.
As our loyal readers, we encourage you to share your thoughts and opinions on this issue. Let your voice be heard and join the discussion below.

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Iron Phoenix
August 2, 2025 at 7:41 am
If the consumer pays more, then, by definition, the tariff isn’t being handled correctly. The sending country pays it, not the end purchaser.