Trump increases tariff on Canada to 35% from 25%, cites fentanyl ahead of August 1 deadline
According to a White House Information Form, a separate 40% tax will be applied for the goods that are re -directed through third countries to overcome new tariffs.
The measure arrived a few hours before Trump’s own imposed date for nations to make new trade agreements with the United States.
Blaming Canada for fentanyl and “retaliation”
The White House referred to the concerns about Fentanyl smuggling by associating what Canada as “inactivity and retaliation”. Although Otawa argues that only a small part of the drug entering the United States is caused by Canadian territory, the authorities already take steps to border border security.
But Trump sees this differently. “Well, they have to pay a fair ratio – that’s all. Very simple. They charge more than 200% of our farmers, very high tariffs and behave very badly to our farmers,” he said.
Carney reached out but there was no interview
Canadian Prime Minister Mark Carney reportedly reached before the entry into force of the tariff hike, but no speech was made. “We didn’t talk to Canada today. He (Carney) called and we’ll see, Tr Trump said, just hours before the publication of new rates to journalists in the White House. On Wednesday, although the trade talks with Washington were “constructive ,, he said that a final agreement of the deadline was not possible.
He added that a complete return of US tariffs is not on the table.
Canada’s response is divided
Without a clear agreement, pressure on Canada is increasing. Carney should coordinate ten not only in different directions. Some require a strong counterpart, others are a more restrained approach.
Premier Doug Ford from Ontario, Canada’s industrial power center and the province, which was most exposed to the US trade deduction, was forced to retaliate. “Canada should not be willing to be less than the right agreement. Now it is not time to overthrow. We need to rely on our way,” he said in an article in X.
Ford called for a 50% counter tariff in US steel and aluminum imports.
Speaking in June, Carney warned that Canada will apply new taxes on American steel and aluminum if no agreement was reached until August 1st.
A vulnerable trade partner
Canada, three -quarters of the United States, including automobiles, steel and aluminum, including the country’s production sector will be hit the most.
According to government data, approximately 90% of the Canadian exports to the United States in May remained within the scope of USMCA. But those who do not comply are now faced with new tariffs.
The figures also show a significant change: the share of Canada exports to the United States decreased to 68%by decreasing 10 percent points compared to last year. Analysts say that the shift reflects a pressure on diversification, as some companies seek new markets to avoid the uncertainty of US policy.
Despite tension, economists believe that the Canadian economy will escape from stagnation by referring to unexpected flexibility and trade adaptation of the economy.
Wider Global Impact: 68 countries were affected
Trump’s order only did not target Canada. New tariffs were applied to 68 countries and the European Union, and there was a 10% basic rate for non -countries.
Taiwan will now face a 20% tariff, Pakistan 19% and Lesoto, which was threatened with 50% tax at the beginning. The same 15% tariff is valid for imports from Israel, Iceland, Ghana, Ecuador, Fiji and Guyana.
A senior US official speaking anonymously said that rates are based on trade imbalance and regional economic weights of each country with the US.
Mexico took a 90 -day breath
In the early hours of Thursday, Trump met with President of Mexican Claudia Sheinbaum. Following the speech, he accepted a 90 -day negotiation window by increasing a planned tariff increase to 30%.
During this period, Mexico will continue to pay 25% existing for non -USA goods.
Sheinbaum wrote Sheinbaum, “We avoided the increase in the tariff for tomorrow, and there’s 90 today to create a long -term agreement through dialogue,” sheinbaum wrote.
Trump described the call as “very successful, and said the leaders should“ get to know each other better ”. Within the scope of the regulation, he said that Mexico’s copper, aluminum and steel imports will face tariffs up to 50%. Cars will be taxed by 25%.
He also claimed that Mexico agreed to eliminate “non -tariff trade barriers” without presenting details.
As Trump signals change
Some goods continue to be protected within the scope of USMCA, a three -way agreement that Trump negotiated in the first period. But now it seems to have cooled the deal.
The agreement is ready for negotiation next year. In recent comments, Trump showed that he was disappointed with both Mexico and Canada and accused them of taking advantage of trade from the United States.
The US Census Bureau data shows that trade imbalance with Mexico has sharply reached $ 171.5 billion in 2016 in 2016 a year before Trump’s office.
More than one agreement in motion
On Thursday, the rush of the tariff activity limited the days of agreement. “Today we have made a few agreements with excellent opportunities for the country, Tr Trump said.
New agreements have been reached with the European Union, Japan, Indonesia, Philippines, South Korea, Cambodia and Thailand. Trade Secretary Howard Lutnick said that the agreements with Cambodia and Thailand to FOX News after both countries agreed to stop the conflict of border.
European Union officials were still working on the framework to tax imported vehicles. Meanwhile, Switzerland and Norway were still expected to be clarified in their own proportions.
A policy that continues to change
Trump’s current tariff strategy developed rapidly. In April, a previous tariff announcements were a stock market and triggered the fears of stagnation. To include Fallout, Trump brought a 90 -day negotiation period, but the White House increased the pressure again as the deadline passed without adequate agreement.
It shook the unpredictable markets and governments. While Trump sees tariffs as leverages, economists warn that costs will fall into US consumers and businesses at the end. For now, pressure has moved to America’s largest trade partners and they will have to decide how to respond.
