President Donald Trump has announced that the United States would impose a 35 percent tariff on imports from Canada next month, while eyeing blanket tariffs of 15 or 20 percent on most other trading partners as he broadens his trade war.
In a letter released on his social media platform on Thursday, Trump told Canadian Prime Minister Mark Carney the new rate would go into effect on August 1 and would go up if Canada retaliated.
It was the latest of more than 20 such letters issued by Trump since Monday, as he continues to pursue his trade war threats against dozens of economies.
The letter on Thursday came despite what had been warming relations between Trump and Carney.
The Canadian leader visited the White House on May 6 and held a cordial meeting with Trump in the Oval Office.
They met again at the G7 summit last month in Canada, where leaders pushed Trump to back away from his punishing trade war.
In an interview with NBC News published on Thursday, Trump also said that other trading partners that had not yet received such letters would likely face blanket tariffs.
“Not everybody has to get a letter. You know that. We’re just setting our tariffs,” Trump said in the interview.
“We’re just going to say all of the remaining countries are going to pay, whether it’s 20 percent or 15 percent. We’ll work that out now,” Trump was quoted as saying by the network.
In recent days, he also set new tariffs on a number of countries, including allies Japan and South Korea, along with a 50 percent tariff on copper.
On Friday, Myanmar, which was also hit by stiff Trump tariffs, pleaded with Trump for a reduction in the 40 percent tariff rate, with ruling Senior General Min Aung Hlaing saying he is ready to send a negotiation team to Washington if needed, according to state media.
Locked in talks
Canada and the US are locked in trade negotiations, hoping to reach a deal by July 21, and the latest threat seems to put that deadline in jeopardy.
Canada, as well as Mexico, are trying to find ways to satisfy Trump so that the free trade deal uniting the three countries, known as the USMCA, can be put back on track.
The United States-Mexico-Canada Agreement replaced the previous NAFTA accord in July 2020, after Trump successfully pushed for a renegotiation during his first term in office.
It was due to be reviewed by July of next year, but Trump accelerated the process by launching his trade wars after taking office in January.
Canadian and Mexican products were initially hard hit by 25 percent US tariffs, with a lower rate for Canadian energy.
Trump targeted both neighbours, saying they did not do enough on undocumented immigration and the flow of illicit drugs across borders.
But he eventually announced exemptions for goods entering his country under the USMCA, covering large swaths of products. Potash, used as fertiliser, got a lower rate as well.
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