Trump Threatens To Impose 35 Percent Tariff on Canada From August 1

Jul 11, Kathmandu - US President Donald Trump said in a letter sent to Canadian Prime Minister Mark Carney on Thursday that a 35 percent tariff will be imposed on Canadian exports to the US starting August 1.

It is the latest in more than 20 letters Trump has issued since Monday, in which he has continued to threaten a trade war against dozens of economies.

Canada and the United States are engaged in trade talks with the hope of reaching a deal by July 21, but the latest threat appears to have changed that deadline.

Both Canada and Mexico are trying to find ways to appease Trump in an effort to get the free trade agreement, known as the USMCA, that unites the three countries, back on track.

“The Canadian government has steadfastly defended our workers and businesses during the ongoing trade negotiations with the United States. We will continue to do so as we work toward the revised August 1 deadline,” Carney posted on social media platform X late Thursday.

The United States-Mexico-Canada Agreement replaced the previous NAFTA agreement in July 2020 after Trump successfully pushed for a renegotiation during his first term.

The review was scheduled to be completed by July next year, but Trump has derailed the process by launching his trade war after taking office in January.

Canadian and Mexican products were initially hit hard by a 25 percent U.S. tariff, along with lower rates for Canadian energy.

Trump has targeted both neighbors, saying they have not done enough to curb illegal immigration and the flow of illegal drugs across the border.

But he eventually announced exemptions for goods entering his country under the USMCA, which covered a large portion of the products.

Thursday's letter comes despite the warm relationship between Trump and Carney. Carney has been at odds with his counterpart Trump's regular push for Canada to become the 51st state of the United States.