Trump Imposes Potential 35% Tariffs on Canadian Imports

US President Donald Trump has announced plans to impose a 35% tariff on Canadian goods starting August 1, just days before the self-imposed deadline for a new trade deal between the two countries. In addition, Trump has threatened blanket tariffs of 15% or 20% on most trade partners and plans to notify the European Union of a new tariff rate on its goods. The new levies were announced in a letter posted on social media and addressed to Canadian Prime Minister Mark Carney. The US has already imposed a blanket 25% tariff on some Canadian goods and is feeling the impact of its global steel, aluminum, and auto tariffs. The letter is among more than 20 that Trump has posted to US trade partners this week, including Japan, South Korea, and Sri Lanka. It is unclear if the tariffs would apply to goods covered by the Canada-United States-Mexico Agreement (CUSMA). Canada sells approximately 75% of its goods to the US and is a major supplier of metals and an auto manufacturing hub, making the US tariffs particularly damaging to those sectors. In the letter, Trump stated that the 35% tariffs are separate from those sector-specific levies and threatened higher tariffs if Canada retaliates. He also tied the tariffs to Canada’s failure to prevent the flow of fentanyl into the US and existing levies on US dairy farmers.

Source: https://www.bbc.com/news/articles/cvg819n954mo