US President Donald Trump has stated he’ll impose a 35% tariff on Canadian items beginning on 1 August, at the same time as the 2 international locations had 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 revealed on Trump’s social media platform Reality Social, together with extra 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 employees 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 arduous by Trump’s world 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 menace.
Trump has additionally imposed a worldwide 50% tariff on aluminium and metal imports, and a 25% tariff on all vehicles and vehicles not constructed within the US.
He additionally 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 significant provider of metals, making the US tariffs particularly damaging to these sectors.
Trump’s letter stated the 35% tariffs had been separate to these sector-specific levies.
“As you’re conscious, there might be no tariff if Canada, or firms inside your nation, resolve to construct or manufacture merchandise inside america,” Trump acknowledged.
He additionally tied the tariffs to what he referred to as “Canada’s failure” to cease the move of fentanyl into the US, in addition to Canada’s current levies on US dairy farmers and the commerce deficit between the 2 international locations.
“If Canada works with me to cease the move 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 international locations.
Based on information from the US Customs and Border Patrol, solely about 0.2% of all seizures of fentanyl coming into the US are made on the Canadian border. Nearly the entire 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 had 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 know-how 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 international locations.
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.”
