is facing a 35% tariff on its exports to the US at the start of August, according to a letter released on US President ‘s Truth Social media platform.
In the letter, Trump told Canada’s Prime Minister Mark Carney that the new tariff would come into effect on August 1.
The neighbors have been in trade negotiations to reach a deal by July 21, but Trump’s threat appears to have shifted that deadline.
The US president has said that the would also receive a letter, suggesting that the EU’s plan to get a deal by August 1 was not going well.
Canada working towards revised deadline, says Carney
“Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1,” Carney posted on social media platform X Thursday night.
in an effort to keep the USMCA — the free trade agreement linking the three countries — on track.
Trump has taken aim at his neighbors to the north and south, accusing them of not doing enough to clamp down on irregular migration and the flow of drugs across the border, specifically fentanyl.
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote.
Trump to send letters to EU, others
Shortly before Trump announced that he would be applying a 35% tariff on Canadian imports, Trump told NBC News that he was planning blanket tariffs on other trading partners, who he said, would be given notification letters “today or tomorrow.”
“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump told “Meet the Press” moderator Kristen Welker in a phone call.
“I’d like to do it today,” Trump said, and added: “I’m talking European Union, which is, as you know, many countries, and Canada. We’ll be putting them out over the next couple of hours.”
Following the announcement, both EU and US stock futures dipped in Asia as trading started on Friday morning.
Trump unexpectedly delayed the deadline for his negotiations with many trade partners this week from July 9 to August 1.
The EU currently faces 50% US tariffs on its steel and aluminium exports, 25% on cars and car parts and 10% on most other products. The EU has said it would impose countermeasures if no deal can be made with the US.
On April 2, in a slew of so-called “reciprocal” tariffs were announced, with 20% being imposed on the EU. These were later taken back to give time for negotiations. The tariff announcements came under considerable criticism after sparking global market turmoil, but some suggested they were part of Trump’s plan to force countries to offer the US a better deal.
Edited by: Alex Berry
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