US President Donald Trump threatened to impose a 35% tariff on all imports from Canada in a letter to Canadian Prime Minister Mark Carney. The 35% tariff is scheduled to take effect on August 1, and the tariff rate will be increased further if Canada takes retaliatory measures.
The United States currently imposes tariffs of 25% on Canadian products not included in the Canada-United States-Mexico Agreement (CUSMA), and 10% on energy and potash ore. Media outlets have quoted senior Trump administration officials as saying that the new 35% tariffs will only be levied on products currently subject to the 25% tariffs, but that no final decision has been made.
Since their face-to-face talks at the G7 summit held in Alberta in June this year, Premier Carney and President Trump have been continuing trade negotiations with the aim of reaching an agreement by July 21. On June 30, the Canadian government withdrew the digital services tax that was about to be introduced in response to a request from Trump, who had hinted at terminating the negotiations, and negotiations had just resumed.
Tariffs on Canadian-made steel, aluminium, and automobiles have already dealt a major blow to the Canadian economy. Trump also announced that he is considering a 50% tariff on copper imports. In 2023, Canada’s exports of copper and copper products will be approximately $9.3 billion, of which 52% will be to the United States.
President Trump once again claimed that “large quantities of fentanyl are flowing into the United States from Canada,” and also expressed dissatisfaction with Canada’s supply chain system.
In response, Prime Minister Carney posted on social media that he was “committed to protecting Canadian workers and businesses,” and that while negotiations with the United States would continue, he would “strengthen trade partnerships around the world.”