The American President Donald Trump has announced an import tariff of 35 percent on Canadian goods. He did so at a remarkable moment: the United States and Canada were about to conclude a new trade agreement.
Trump announced the tariff via his own platform Truth Social. The import tariff would take effect on August 1. The president also warns other countries, including Japan, South Korea, and Sri Lanka. These countries could expect a similar import tariff.
According to Trump, he is imposing the new import tariffs partly because Canada “fails” to stop the influx of fentanyl into the US. If Canada does not cooperate, the tariffs could increase further, he threatens. But a reduction is also possible, he adds. That is “dependent on the relationship between our countries”.
The Canadian Prime Minister Mark Carney announces via X that his government is committed to protecting Canadian companies and employees. At the same time, he emphasizes that Canada has already taken steps to address the fentanyl problem. These include appointing a special coordinator and increasing border security.
Figures from the American customs show that less than 0.2 percent of all fentanyl seizures take place at the Canadian border. The vast majority is intercepted at the border with Mexico.
Negotiations are proceeding with difficulty
The US and Canada have been in talks for months about a trade agreement. At the end of last month, Trump announced that he wanted to end all discussions with Canada because the Canadian government wanted to introduce a digital services tax for the US.
After that, Canada withdrew that tax measure and trade talks between the countries were in full swing. Canadian Foreign Minister Anita Anand announced on Thursday that Canada would continue to talk to the US to resolve tensions.
The announced tariffs hit Canada hard. The country exports about three quarters of its goods to the US. Sectors such as the automotive industry and metal are particularly vulnerable to American trade measures.
Trump also wants to raise the standard tariff
Trump is busy with the trade tariffs. This week, the president published letters to 22 countries in which he announced the trade tariff for their products. He also told NBC News on Thursday that he plans to introduce a general import tariff of 15 to 20 percent on goods from a large number of trading partners.
That tariff would apply to countries for which the American government has not yet announced a specific tariff. Normally, those tariffs are at 10 percent, but according to Trump, it is time to increase them.
“We will simply say that all other countries are going to pay, whether it is 20 percent or 15 percent,” Trump told the American news channel. The president wants to hit foreign producers with the tariffs and make them pay. But in the end, domestic parties often bear the costs of the tariffs.