President Donald Trump revealed on Thursday that the United States will impose a 35% tariff on goods imported from Canada beginning August 1, citing Ottawa’s retaliatory actions as the reason behind the move.
“Instead of working with the United States, Canada retaliated with its own Tariffs,” Trump wrote in a message addressed to Canadian Prime Minister Mark Carney, which was shared publicly on Truth Social.
Trump pointed to the fentanyl crisis as a factor behind the tariff decision, suggesting that progress on that issue could potentially change the tariff plan. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” he said.
According to Trump, the new tariff rate will be distinct from any previously existing sector-specific tariffs. He warned that if Canada hits back with more trade penalties, the U.S. will respond with even higher duties. “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge,” he declared.
The letter also made clear that any attempts to reroute goods to bypass the increased tariff would be met with the same penalty. “Good transshipped to evade this higher tariff will be subjected to that higher tariff,” it stated.
Trump noted that the tariff rate could either go up or be reduced based on how negotiations unfold with Canada. He stressed that the issues between the two nations aren’t limited to fentanyl. ″[Canada] has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States … The Trade Deficit is a major threat to our Economy and, indeed, our National Security!”
Currently, Canadian products are subject to a 25% tariff put in place earlier this year, aimed at addressing Canada’s alleged connection to fentanyl trafficking. Exceptions have been made for those complying with the United States-Mexico-Canada Agreement, while Canadian energy exports face a reduced 10% tariff.
The latest tariff announcement followed a June 29 agreement between the two nations to restart trade negotiations, aiming for a new deal by July 21, according to Canada’s Department of Finance.
Trump had previously threatened to call off all trade talks with Canada after it refused to halt its planned digital services tax targeting U.S. tech companies. Canada eventually dropped the tax, clearing the way for talks with Washington to resume.
{Matzav.com}