President Donald Trump stated that the on all Canadian goods would take effect from Aug. 1, and also issued a threat of a broad 15 to 20% levy on most other nations.
“If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge,” the President remarked to .
Carney stated that his government would continue to safeguard workers and businesses while trade negotiations proceed until the “revised deadline of August 1.”
Trump asserted that the “fentanyl crisis” was “hardly the only challenge we have with Canada,” also mentioning “unsustainable trade deficits.”
Only in the U.S. originate from Canada, according to data from Customs and Border Control.
The U.S. goods trade deficit with Canada totaled $63 billion last year, according to the Office of the United States Trade Representative.
However, while that amount is smaller than the $295 billion goods deficit with China, few countries depend on trade with the U.S. as significantly as its northern neighbor. Approximately three quarters of Canadian goods are exported to the U.S. and trade constitutes roughly two thirds of the economy, as per Global Affairs Canada.
Carney had recently discontinued a on major American technology firms as part of a “bigger negotiation” with the U.S. on trade. White House Press Secretary Karoline Leavitt had deemed the tax a misstep and said Carney under pressure from Trump.
It remains uncertain if the 35% tariff would encompass all Canadian goods, or if Trump will proceed with the threat. “These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” Trump wrote in his letter.
In March, on Canadian car and auto parts were implemented, and in June on the country’s steel and aluminum.
Trump has dispatched letters to more than 20 countries this week. On Wednesday, he threatened Brazil with if it continues its “witch hunt trial” against former President Jair Bolsonaro regarding his alleged role in a plot to overturn the 2022 election.
Trump announced on April 2, a decision that led to record stock market losses at the time. He later declared a 90-day suspension with a reduced baseline 10% tariff on most nations that was set to expire on July 9.
Trump agreed this week to extend the deadline to Aug. 1 to provide more time for negotiations.
