35% tariff on Canada announced by Donald Trump; threatens more if retaliated
 |
35% tariff on canada announced by donald trump; threatens more if retaliated |
“It is a great honor for me to send you this letter... demonstrating the strength and commitment of our trading relationship,” Trump stated. “Starting August 1, 2025, we will charge Canada a tariff of 35 per cent on Canadian products sent into the United States, separate from all sectoral tariffs.”
Tariffs linked to fentanyl crisis
In his message, Trump justified the move by blaming Canada’s handling of the U.S. fentanyl crisis, claiming that the country has failed to stop the flow of drugs into the United States. He further criticized Canada for retaliating with tariffs of its own instead of cooperating.
“The United States imposed tariffs on Canada to deal with our nation’s fentanyl crisis... Instead of working with the United States, Canada retaliated,” Trump wrote.
No tariff for U.S.-based manufacturing
Trump also offered a waiver clause, saying Canadian companies manufacturing within the United States would not be subjected to the new tariff.
“There will be no tariff if Canada or companies within your country decide to build or manufacture product within the United States,” he said, promising quick and professional approval for such ventures.
He warned that if Canada raises its own tariffs in response, the U.S. will increase its tariff rate by an equivalent margin on top of the 35%.
Broader trade shift underway
The announcement reflects Trump’s broader effort to enforce “reciprocal” trade relationships. Ongoing negotiations with several countries are expected to shape U.S. trade policy in the coming months.
The Canadian government has not yet issued an official response to the new tariffs.
0 comments :
Post a Comment