In a letter to Prime Minister Mark Carney, US President Donald Trump announced fresh tariffs against Canada that will take effect next month.
On Friday, the EU anticipates receiving a similar letter. According to a letter posted on US President Donald Trump’s Truth Social-media platform, Canada will be subject to a 35% tariff on its exports to the US beginning in August.
Trump informed Prime Minister Mark Carney of Canada in the letter that the additional duty would take effect on August 1.
Trump’s warning seems to have moved the deadline for the trade talks between the neighbours, which were supposed to conclude by July 21.
To keep the USMCA, the free trade agreement that unites the three nations, on track, Canada and Mexico are attempting to satisfy Trump’s demands.
Trump has attacked both his northern and southern neighbours, saying they are not doing enough to stop illegal immigration and the flow of drugs, particularly fentanyl, across the border.
Trump told NBC News that he was intending to impose blanket tariffs on additional trading partners, who would receive notification letters “today or tomorrow.”
This was just before he announced that he would be imposing a 35% tariff on Canadian imports.
As trading began on Friday morning, both US and EU stock futures fell in Asia after the announcement.
This week, Trump abruptly moved the date for his talks with numerous trading partners from July 9 to August 1.
Currently, the US imposes 50% tariffs on EU exports of steel and aluminium, 25% on automobiles and auto components, and 10% on the majority of other goods.
If an agreement with the US cannot be reached, the EU has threatened to take countermeasures.
Trump referred to April 2 as “Liberation Day,” when a number of so-called “reciprocal” duties were announced, 20% of which were levied against the EU.
Later, these were removed to allow for discussions. After causing unrest in the world market, the tariff announcements drew a lot of criticism, but some claimed they were a component of Trump’s strategy to pressure nations to give the US a better deal.
Source: DW News
