Trump Announces 35% Tariff on Canadian Imports Amid Escalating Trade Tensions

In a significant escalation of trade tensions between the United States and Canada, Donald Trump has declared the implementation of a 35% tariff on Canadian imports, set to take effect from 1 August. The announcement, made through his social media platform in a letter to Canadian Prime Minister Mark Carney, signals an intensification of the ongoing trade dispute between the two nations.

The move follows Trump’s previous tariff impositions of 25% on Canadian automotive parts and a substantial 50% levy on steel and aluminium imports implemented earlier this year. The US administration has indicated these rates could increase should Canada pursue retaliatory measures.

The Canadian government’s response has been measured but firm, with Prime Minister Carney expressing his commitment to protecting Canadian workers and businesses through continued negotiations leading up to the August deadline. The timing of this announcement is particularly sensitive, as both nations are currently engaged in critical trade discussions.

The broader implications of Trump’s trade strategy are becoming apparent, with the former president issuing more than 20 similar letters to various trading partners since Monday. The administration has suggested that other nations not yet receiving formal notifications might face blanket tariffs ranging from 15% to 20%.

The legal standing of these tariff implementations remains uncertain, following a May ruling by the US Court of International Trade questioning the president’s authority to impose such measures without legitimate emergency circumstances. A pivotal appeal hearing scheduled for 31 July could potentially nullify these new tariff rates.

The situation has cast a shadow over the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA in July 2020. The trade pact’s scheduled review next year now faces considerable uncertainty as Trump’s aggressive trade policies continue to reshape North American commercial relationships.