President Trump has threatened a 35% tariff on Canadian goods, affecting trade talks that seemed promising just weeks ago.
Trump's 35% Tariff Threat Puts Canada-U.S. Trade Talks at Risk
Trump's 35% Tariff Threat Puts Canada-U.S. Trade Talks at Risk
Tariffs could significantly impact Canada's export-reliant economy as tensions rise during negotiations.
Prior to a critical deadline, President Trump announced via social media that a new 35 percent tariff on Canadian imports could be implemented starting August 1. This unexpected declaration threatens to derail ongoing negotiations, during which Canadian officials were optimistic about reaching a trade agreement in the near future. In his post, Trump accused Canada of "financially retaliating" against the U.S. with its own tariffs and reiterated his position that Canada has failed to adequately control the flow of fentanyl into the United States. He also expressed discontent over Canadian tariffs on U.S. dairy products.
While the newly proposed tariffs could potentially be adjusted based on the state of U.S.-Canada relations, experts warn that a 35 percent tariff, if broadly applied, would severely impact Canada's economy, which heavily depends on trade with the U.S., its primary market. Reacting to the tariff threat, Canadian Prime Minister Mark Carney acknowledged the new deadline but focused on securing a fair deal for Canadian workers, indicating that Canada would continue to advocate for its interests in the negotiations.
While the newly proposed tariffs could potentially be adjusted based on the state of U.S.-Canada relations, experts warn that a 35 percent tariff, if broadly applied, would severely impact Canada's economy, which heavily depends on trade with the U.S., its primary market. Reacting to the tariff threat, Canadian Prime Minister Mark Carney acknowledged the new deadline but focused on securing a fair deal for Canadian workers, indicating that Canada would continue to advocate for its interests in the negotiations.
