Will Mark Carney retaliate as Trump hikes tariffs on Canadian imports to 35%?

In an unprecedented move, United States President Donald Trump has announced he would impose 35 per cent tariffs on imports from Canada from August 1. The announcement comes a day after the US president announced 50 per cent tax on imports from Brazil over the Bolsonaro trial.

 

In a letter sent to Canadian Prime Minister Mark Carney on Thursday, the US president said he would raise taxes on imported goods from Canada to 35 per cent, deepening a rift between the two North American countries.

 

President Trump has also warned that the tariff would increase if Canada retaliates. The letter comes amid trade talks between the US and Canada, aiming to reach a pact by July 1. The recent tariffs are considered to be an aggressive hike over 25 per cent tax announced by Trump in February. 

 

"I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers," Trump wrote to Carney.

 

"As you are aware, there will be no Tariff if Canada, or companies within your country, decide to build or manufacture products within the United States, and in fact, we will do everything possible to get approvals quickly, professionally, and routinely. In other words, in a matter of weeks," the US president said.

 

Trump's tariff hike, citing fentanyl crisis, comes despite Ottawa announcing a $1.3-billion investment in border security and naming a fentanyl czar to address the concerns coming from the White House.

 

Canada's Foreign Affairs Minister Anita Anand said they are hopeful that the US and Canada will reach a trade agreement by the July 21 deadline. "This is an effort that we are putting all our weight behind, it is necessary for the health of our economy," the Canadian minister said during a press conference in Malaysia. 

 

Trump has sent a series of tariff letters to several countries including Brazil, the Philippines, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka. Trump announced a 50 per cent tax hike on Brazil over the ongoing trial against its former president, Jair Bolsonaro, for trying to stay in office after his 2022 election loss. 

World