Trump imposes 35% tariff on Canadian imports starting August 1
What's the story
US President Donald Trump has announced a 35% tariff on Canadian imports, starting August 1. The move is aimed at countering "Canada's retaliation" and trade barriers. In an official letter shared on Truth Social, Trump accused Canada of not cooperating on key issues like fentanyl trafficking into the US and unfair trade practices.
Tariff details
US will continue trading with Canada under revised terms
So far, Trump has sent letters to 22 countries detailing new tariff rates. The list includes a whopping 50% tariff on imports from Brazil and a similar levy on copper imports. In his letter, Trump stressed that while the US will continue trading with Canada, it will be under revised terms. He also warned against any attempts to circumvent the new tariffs through transshipment.
Trade threats
Retaliatory action would result in additional tariffs: Trump
Trump warned Canada that any retaliatory action would result in additional tariffs. He also criticized Canada's high tariffs on US dairy exports, calling them "extraordinary" and a contributor to America's trade deficit. The President framed the trade imbalance as not just an economic issue but also a national security concern. He promised quick regulatory approvals for Canadian companies moving operations to the US under this new regime.
Tariff expansion
Blanket tariffs on other trading partners too
Along with the new tariffs on Canada, Trump also announced plans for blanket tariffs of 15% or 20% on other trade partners. He said the European Union could get tariff letters by Friday. In an interview with NBC News, Trump hinted that other trading partners who haven't received such letters could be facing similar blanket tariffs soon.