US President Donald Trump has stated he’ll impose a 35% tariff on Canadian items beginning on 1 August, whilst the 2 nations have been days away from a self-imposed deadline to succeed in a brand new commerce deal.
The announcement got here within the type of a letter printed on Trump’s social media platform Fact Social, together with further threats of blanket tariffs of 15% or 20% on most commerce companions.
Canadian Prime Minister Mark Carney stated his authorities would proceed to guard his nation’s staff and companies as they head in direction of the brand new deadline.
Trump has despatched greater than 20 such letters to different US companions this week. He additionally says he’ll quickly announce new tariffs on the European Union.
Like Canada’s letter, Trump has vowed to implement these tariffs by 1 August.
A blanket 25% tariff has already been imposed on some Canadian items, with the nation additionally hit onerous by Trump’s international metal, aluminium and auto tariffs – although there’s a present exemption in place for items that adjust to a North American free commerce settlement.
US media is reporting that, for now, the Canada-United States-Mexico Settlement (CUSMA) exemption would nonetheless apply to this newest tariffs risk.
Trump has additionally imposed a worldwide 50% tariff on aluminium and metal imports, and a 25% tariff on all automobiles and vehicles not constructed within the US.
He additionally just lately introduced a 50% tariff on copper imports, scheduled to take impact subsequent month.
Canada sells about three-quarters of its items to the US, and is an auto manufacturing hub and a serious provider of metals, making the US tariffs particularly damaging to these sectors.
Trump’s letter stated the 35% tariffs have been separate to these sector-specific levies.
“As you might be conscious, there can be no tariff if Canada, or corporations inside your nation, resolve to construct or manufacture merchandise inside the US,” Trump said.
He additionally tied the tariffs to what he known as “Canada’s failure” to cease the circulation of fentanyl into the US, in addition to Canada’s current levies on US dairy farmers and the commerce deficit between the 2 nations.
“If Canada works with me to cease the circulation of Fentanyl, we are going to, maybe, take into account an adjustment to this letter. These Tariffs could also be modified, upward or downward, relying on our relationship with Your Nation,” Trump stated.
Trump has beforehand accused Canada – alongside Mexico – of permitting “huge numbers of individuals to return in and fentanyl to return in” to the US.
In his response on X, Carney stated Canada had made important progress to “cease the scourge of fentanyl” in North America, and that his authorities was dedicated to persevering with to work alongside the US to guard communities in each nations.
In keeping with information from the US Customs and Border Patrol, solely about 0.2% of all seizures of fentanyl getting into the US are made on the Canadian border. Nearly all the relaxation is confiscated on the US border with Mexico.
Earlier this yr, Canada additionally introduced extra funding in direction of border safety and had appointed a fentanyl tsar in response to Trump’s complaints.
Canada has been engaged in intense talks with the US in current months to succeed in a brand new commerce and safety deal.
On the G7 Summit in June, Carney and Trump stated they have been dedicated to reaching a brand new deal inside 30 days, setting a deadline of 21 July.
Trump threatened within the letter to extend levies on Canada if it retaliated. Canada has already imposed counter-tariffs on the US, and has vowed extra in the event that they failed to succeed in a deal by the deadline.
In late June, Carney eliminated a tax on huge US expertise companies after Trump labelled it a “blatant assault” and threatened to name off commerce talks.
Carney stated the tax was dropped as “a part of a much bigger negotiation” on commerce between the 2 nations.
On Friday, Canada’s business minister Melanie Joly dismissed media questions on whether or not Ottawa was doing sufficient to face for Canadians, saying: ‘We’re not going to barter in public.”
