- The cuts expected for energy, fertilizer, USMCA products.
- Carney says that progress on fentanyl will protect Canadians.
- Trump says he can reconsider, depending on the fentanyl flows.
President Donald Trump said on Thursday that the United States would impose a 35% rate on Canada’s imports next month and planned to impose general or 20% tariffs on most other business partners.
In a letter published on his social media platform, Trump told Canadian Prime Minister Mark Carney that the new rate would come into force on August 1 and increased if Canada retained itself.
In an article on X late Thursday, Carney said that his government would continue to defend Canadian workers and businesses in their negotiations with the United States while working on this deadline.
The 35% rate is an increase compared to the current rate of 25% that Trump had awarded to Canada and is a blow to Carney, who was trying to agree with a commercial pact with Washington.
An exclusion for the goods covered by the agreement of the United States-Mexico-Canada (USMCA) on trade was to remain in place, and the 10% tariffs on energy and fertilizers were also not ready to change, although Trump did not make a final decision on these issues, said an administration official.
Trump complained in his letter of what he called the fentanyl flow of Canada as well as the country’s pricing and non -tariff barriers of the country who injured dairy producers and others. He said the trade deficit was a threat to the American economy and national security.
“If Canada is working with me to stop the fentanyl flow, we may consider an adjustment to this letter,” wrote Trump.
Canadian officials say that a tiny quantity of fentanyl comes from Canada, but have taken steps to strengthen the border.
“Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect the communities in our two countries,” added Carney in its X Post on Tuesday evening.
The Prime Minister said last month that he and Trump agreed to conclude a new economic and security agreement within 30 days.
Trump has expanded his trade war in recent days, establishing new prices on a certain number of countries, including allies Japan and South Korea, as well as a 50% tariff on copper.
In an interview with NBC News published on Thursday, Trump said that other business partners who had not yet received such letters would likely be against general prices.
“Not everyone has a letter. You know it. We are only putting our prices,” said Trump in the interview.
“We are just going to say that all the remaining countries will pay, whether 20% or 15%. We will resolve it now,” said Trump, quoted by the network.
Canada is the second American trading partner after Mexico and the largest buyer in American exports. He bought $ 349.4 billion in American products last year and exported $ 412.7 billion in the United States, according to US Census Bureau data.
Carney, who led his Liberal party to a victory in the return elections earlier this year with a commitment to meet the commercial challenges with the United States, aimed to negotiate a trade agreement with its key trading partner by July 21.
Trump, in his letter, did not specifically explain how commercial negotiations were taking place, but he said that “the prices can be modified, ascending or down, depending on our relations with your country”.
Last month, the Carney government abandoned a planned tax on digital services targeting American technology companies after Trump suddenly canceled commercial talks claiming that the tax was a “flagrant attack”.
