In a bold move, US President Donald Trump has threatened to impose a staggering 35% tariff on Canadian imports starting August 1, as the two nations approach a self-imposed trade negotiation deadline. This announcement follows Trump’s warning of potential blanket tariffs of 15% or 20% on other international trade partners, with the EU also set to receive a new tariff outline soon.
In a letter shared via social media and addressed to Canadian Prime Minister Mark Carney, Trump outlined his position, highlighting ongoing tariffs of 25% already affecting several Canadian goods. He has also placed significant tariffs on aluminum, steel, and vehicles not manufactured in the US.
With Canada exporting about 75% of its goods to the US, the proposed tariffs could substantially harm its economy, particularly in the auto and metals sectors. Trump indicated that these tariffs would be independent of existing agreements under CUSMA and linked them to Canada’s compliance with US drug enforcement, particularly regarding fentanyl.
He stated that tariffs could be reconsidered should Canada collaborate on these issues. Currently, Canada has begun ramping up efforts to enhance border security in light of Trump’s accusations. Urgent negotiations continue, with Canada contemplating further retaliatory tariffs if Trump proceeds with these measures.
The Prime Minister’s office has not issued an immediate response to the letter, as both nations strive to finalize a new trade agreement.
Source: www.bbc.com
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