Canada to Face 35% Tariff Rate Starting August 1
President Donald Trump imposes higher tariffs on Canadian exports amid ongoing trade negotiations.
Canada will face a 35 percent tariff on exports to the United States starting August 1, according to President Donald Trump's announcement in a letter to Prime Minister Mark Carney.
This escalation marks the latest development in an ongoing series of trade tensions between the two nations.
The tariffs were announced amid more than twenty similar letters issued by Trump since Monday, as he continues his pursuit of a trade war against multiple economies.
Canada and Mexico are currently engaged in negotiations aimed at reaching a deal by July 21, with this latest threat potentially jeopardizing that deadline.
Both countries are actively seeking solutions to satisfy President Trump in order to revive the free trade agreement, known as the United States-Mexico-Canada Agreement (USMCA).
The USMCA replaced the North American Free Trade Agreement (NAFTA) in July 2020 after Trump successfully advocated for renegotiations during his first term.
The agreement was set to be reviewed in July of next year; however, Trump accelerated the review process by launching trade wars following his inauguration in January.
Initially, Canadian and Mexican products were subject to 25 percent US tariffs, with a lower rate applied to Canadian energy exports.
President Trump justified these measures citing concerns over insufficient efforts to address issues related to both legal immigration and the flow of illicit drugs across borders.
Despite this, exemptions for goods entering under the USMCA were eventually announced, covering a significant portion of products.
The decision to impose a 35 percent tariff rate on Canadian exports comes despite any prior indications of warming relations between Trump and Carney.
The Canadian Prime Minister visited the White House on May 6, where he met with Trump in the Oval Office, followed by another encounter at the G7 summit last month in Canada, where leaders urged Trump to reconsider his aggressive trade policies.
This escalation marks the latest development in an ongoing series of trade tensions between the two nations.
The tariffs were announced amid more than twenty similar letters issued by Trump since Monday, as he continues his pursuit of a trade war against multiple economies.
Canada and Mexico are currently engaged in negotiations aimed at reaching a deal by July 21, with this latest threat potentially jeopardizing that deadline.
Both countries are actively seeking solutions to satisfy President Trump in order to revive the free trade agreement, known as the United States-Mexico-Canada Agreement (USMCA).
The USMCA replaced the North American Free Trade Agreement (NAFTA) in July 2020 after Trump successfully advocated for renegotiations during his first term.
The agreement was set to be reviewed in July of next year; however, Trump accelerated the review process by launching trade wars following his inauguration in January.
Initially, Canadian and Mexican products were subject to 25 percent US tariffs, with a lower rate applied to Canadian energy exports.
President Trump justified these measures citing concerns over insufficient efforts to address issues related to both legal immigration and the flow of illicit drugs across borders.
Despite this, exemptions for goods entering under the USMCA were eventually announced, covering a significant portion of products.
The decision to impose a 35 percent tariff rate on Canadian exports comes despite any prior indications of warming relations between Trump and Carney.
The Canadian Prime Minister visited the White House on May 6, where he met with Trump in the Oval Office, followed by another encounter at the G7 summit last month in Canada, where leaders urged Trump to reconsider his aggressive trade policies.
