President Trump on Thursday threatened to impose 35% tariffs on goods from Canada starting next month, hiking import duties on one of America’s largest trading partners.
President announced 35% tax in a letter posted to Canadian Prime Minister Mark Carney True socialCiting the alleged “failure to stop drugs in our country”, as well as the right -wing tariff Canada has imposed on American goods. The President said that the new tariffs are ready to be effective on August 1.
This step is an increase from Canadian – and Mexican – 25% tariff on imports Declared by Mr. Trump Shortly after taking office. He later Free goods Cover by the US-Maxico-Canada trade agreement, which was interacted during Mr. Trump’s first term. It is not clear whether the same discount will apply to the 35% tariff of next month.
Mr. Trump Sent similar letters For leaders of more than 20 other countries this week, they are asking them to expect a high tariff starting next month. He NBC News’ told Christon Velkar On Thursday, “all remaining countries” will probably have to face a tariff of 15% to 20% – the baseline is higher than the 10% rate that is currently applicable to all countries.
But Canada is the largest American trading partner to receive a letter so far. Canada was the largest buyer of American goods for the US last year and the third largest seller of goods for America last year census Bureau data. The country bought some $ 350 billion US goods and sold $ 412 billion to the US market in 2024.
Mr. Trump’s letter to Carney says that he will “consider an adjustment in this letter” if Canada works with me then to prevent the flow of fenteenile. ” For months, the President has cast tariffs against Canada and Mexico as a way to stem two US neighbors for illegal immigration and phentyne smuggling, though Very little fentanyl appears to enter America via Canada. Last year, just 43 pounds were seized on the Canadian border compared to 21,100 pounds on the Mexican border.
President also attacked Canada for “vengeance”[ing] With your own tariff. “And he said that Canada has implemented other obstacles on American imports.
Mr. Trump has discussed with Canada for months, but his relationship with the Northern neighbor of the United States has sometimes been rocky, depicting retaliation duties from American tariffs Canada. chairman In short all the business talks stopped Last month due to a planned digital service tax with Canada that could hit American tech companies, but talks Started again after days Carney after the tax canceled.
Mr. Trump is also Repeatedly introduced Regarding Annex to Canada, and Carney’s party won this year’s parliamentary elections after Prime Minister Run on a stage To defend Canada from the ambitions of Trump administration.
Trump enhances tariffs on dozens of countries
The President is sending tariff letters of this week of tariff letters after the first three months with the first “mutual tariff” against dozens of countries on “Mukti Day” in early April, as well as 10% tariff on everyone. The move ignored the financial markets and provoked the fears of recession and inflation, and Mr. Trump quickly suspended most of the duties for 90 days – separated from 10% baseline rate – he said that he planned to negotiate business deals.
With a 90-day stagnation to end this week, Mr. Trump started sending letters Dozens of business partners From Japan to South Africa informs them about their planned tariffs. The US has a trade deficit with most countries, who received the letters of Mr. Trump, although Brazil was Threatened with 50% tariff Despite running a business surplus of America. The letter cited the prosecution of the right wing of former Brazilian President Jair Bolsoro, which Mr. Trump called “Witch Hunt”.
At the top of the country-specific tariff, the President has also imposed a “sectoral” tariff on the foreigner. steel, copper And other specific categories of goods.
Mr. Trump says that tariffs are necessary to revive American manufacturing and correct trade imbalance. But many economists warned that tariffs give rise to high consumer prices and slow economic growth. Federal Reserve Chair Jerome Powell Said that concerns about tariffs are partially guilty There is no cut in interest rates so far this year for the central bank’s decision.
Nevertheless, the President has stood by his business strategy.
Mr. Trump told NBC News on Thursday, “I think the tariffs have been received very well.” “The stock market today hit a new high.”
