Trump Raises Tariffs on Canadian Imports to 35%

WASHINGTON (AP) — In a bold move, President Donald Trump has increased the tariff rate on U.S. imports from Canada from 25% to 35%, effective Friday. This decision was announced by the White House late Thursday and is rooted in allegations that Canada has not sufficiently acted to combat drug trafficking and related criminal activities.

Background on Tensions

For months, Trump has criticized Canada and has even suggested its incorporation as the 51st U.S. state. This latest tariff hike comes as part of his ultimatum to Canada: reach a trade agreement or face increased tariffs.

Impact of Canada’s Foreign Policy

Earlier on Thursday, Canadian Prime Minister Mark Carney voiced concerns about the impact of Canada’s announcement to recognize a Palestinian state, indicating that it would complicate trade negotiations with the U.S. The President has also expressed dissatisfaction over the trade deficit with Canada, primarily driven by U.S. oil purchases.

Canada’s Response

In the wake of the tariff announcement, Prime Minister Carney expressed disappointment and reiterated Canada’s commitment to seeking advantageous trade agreements. He emphasized that Canada accounts for merely 1% of U.S. fentanyl imports and noted significant steps taken to enhance border security.

“We will work to diversify Canada’s exports and minimize the impact on our industries,” Carney stated, acknowledging that sectors such as lumber, steel, aluminum, and automobiles may face significant challenges due to the increased tariffs.

USMCA and Future Negotiations

Interestingly, Canada was absent from Trump’s updated list of tariffs on other nations announced late Thursday. Although the increased tariffs on Canadian imports do not extend to goods protected under the 2020 United States-Mexico-Canada Agreement (USMCA), this agreement is set to be renegotiated next year.

The White House specified that any goods transshipped through Canada and not covered by the USMCA will incur a 40% tariff rate, though it remains unclear where these goods are sourced from.

The Road Ahead

President Trump has announced a 90-day negotiation period with Mexico following a discussion with President Claudia Sheinbaum, during which the established 25% tariff rates remain in effect. As trade tensions rise, the future of U.S.-Canada relations hangs in the balance.