U.S. President Donald Trump said he will crack down on tariffs on Canadian goods starting August 1, even if the two countries have a few days to go before the self-imposed deadline to reach a new trade deal.
Trump also threatens 15% or 20% blanket tariffs for most trading partners and says he will soon notify the EU of new tariff rates on his goods.
Trump announced Canada’s new taxes in a letter to social media on Thursday and wrote to Prime Minister Mark Carney.
The United States has imposed a 25% blanket tariff on some Canadian goods, and the country is feeling the pain of the Trump administration’s global steel, aluminum and automatic tariffs.
The letter is more than 20 letters Trump has posted to U.S. trading partners this week, including Japan, South Korea and Sri Lanka.
Like the Canadian letter, Trump vowed to impose these tariffs on trading partners by August 1.
The U.S. imposes a 25% tariff on all Canadian imports, despite currently violating goods that comply with the NAFTA.
It is unclear whether the latest tariff threats apply to goods covered by the US Mexico Agreement (CUSMA).
Trump also imposed a 50% global tariff on aluminum and steel imports, and all cars and trucks are not built in the United States.
Canada sells about three-quarters of goods to the United States, and is a center for automobile manufacturing and a major metal supplier, making these tariffs particularly hurt these sectors.
Trump’s letter said the 35% tariff is separate from those specific departments’ taxes.
“As you know, if a company in Canada or your country decides to build or manufacture products in the United States, there will be no taxes,” Trump said.
He also halted the tariffs with what he called “Canadian failure” to stop fentanyl from entering the United States, as well as Canada’s existing taxes on American dairy farmers and the trade deficit between the two countries.
Canada has had intense conversations with the United States in recent months to reach new trade and security agreements.
At the G7 summit in June, Prime Minister Carney and Trump said they promised to reach a new deal within 30 days, with a deadline of July 21.
In late June, Carney removed taxes from major U.S. technology companies after Trump marked it as a “blatant attack” and threatened to call trade talks.
Carney said the tax was reduced, which was “part of larger negotiations” on trade between the two countries.
The BBC has contacted Canadian officials.
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A wellness enthusiast and certified nutrition advisor, Meera covers everything from healthy living tips to medical breakthroughs. Her articles aim to inform and inspire readers to live better every day.
