Donald Trump has announced plans to impose a 35% tariff on goods imported from Canada and a 15 or 20% increase for most other countries. In a letter to Canadian Prime Minister Mark Carney, Trump highlighted Fentanyl smuggling as just one of several issues with Canada’s trade policies.
Trump’s tariffs are intended to pressure Canada to crack down on Fentanyl trafficking, and he has expressed frustration with the trade deficit between the US and Canada. Prime Minister Carney responded by affirming Canada’s commitment to defending its workers and businesses during the ongoing trade negotiations, and to continue working with the US to combat the Fentanyl crisis.
Trump has sent similar tariff-related letters to 23 countries, including Brazil, where a 50% tariff has been proposed due to the ongoing trial of former President Jair Bolsonaro. The higher tariffs are set to take effect on August 1st.
After Trump announced his “Liberation Day” tariffs on April 2nd, there was a significant sell-off on the financial markets. He later declared a 90-day negotiating period, during which a 10% baseline tariff would be imposed on most imported goods.
