In a surprising move, former U.S. President Donald Trump announced on Thursday that the United States will impose a 35% tariff on imports from Canada beginning August 1. This significant increase from the previous 25% tariff marks an escalation in trade tensions between the two countries.
Trump communicated the new tariff rate in a letter released on his social media platform, addressing Canadian Prime Minister Mark Carney. He cautioned that the tariff could rise even higher if Canada retaliated. “If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote.
Prime Minister Carney responded on X (formerly known as Twitter) late Thursday, affirming his government’s commitment to defending Canadian workers and businesses. “Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries,” Carney stated.
The new tariffs exclude goods covered under the United States-Mexico-Canada Agreement (USMCA), and existing 10% tariffs on energy and fertilizer remain unchanged. An administration official mentioned that Trump had not made a final decision on these exclusions.
Trump justified the tariff hike by citing concerns over the trade deficit and alleged Canadian trade barriers impacting U.S. dairy farmers and other industries. He also pointed to the flow of fentanyl from Canada into the United States as a national security threat.
In recent developments, Trump has expanded his tariff policies to include new levies on other countries, such as Japan and South Korea, along with a 50% tariff on copper. “We’re just going to say all of the remaining countries are going to pay, whether it’s 20 percent or 15 percent. We’ll work that out now,” Trump told NBC News in a phone interview.
These escalating trade measures have raised concerns about potential impacts on global trade and the economies of the involved nations. Canadian officials have expressed a desire to conclude a new economic and security agreement with the United States within 30 days.
As the August 1 deadline approaches, both nations are preparing for critical negotiations that could redefine their economic relationship. The international community watches closely, aware that these developments could have far-reaching effects on global markets.
