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WASHINGTON, July 31 (Xinhua) -- U.S. President Donald Trump on Thursday signed an executive order increasing the tariff on Canada from 25 percent to 35 percent, with the higher tariff set to go into effect on Aug. 1, the White House said in a fact sheet.

"Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President's actions to address this unusual and extraordinary threat to the United States," said the fact sheet.

The White House said that in response to Canada's "continued inaction and retaliation," Trump has found it necessary to increase the tariff on Canada to "effectively address the existing emergency."

Goods qualifying for preferential tariff treatment under the United States-Mexico-Canada Agreement will continue to remain not subject to the new tariffs. Goods transshipped to evade the 35 percent tariff will be subject, instead, to a transshipment tariff of 40 percent.

On Thursday, Trump also announced so-called "reciprocal tariff rates" of up to 41 percent on many countries.