On July 31, US President Donald Trump signed an executive order raising tariffs on Canadian products to 35%.
According to a White House statement, the tariffs, which had been in place since March of this year, will be raised to 35% as of August 1, as warned. The reason given is that Canada has taken retaliatory measures against the United States for not cooperating in curbing the inflow of illegal drugs such as fentanyl. However, since these do not include products that meet the conditions of the Canada-United States-Mexico Agreement (CUSMA), most Canadian exports will continue to be exempt from the tariffs.
On the 30th, Prime Minister Carney announced his “intention to recognize the state of Palestine,” and when asked if this had affected the trade talks, President Trump said, “I didn’t like what was announced,” but added, “It wasn’t a deal-breaker. I haven’t spoken to Canada today. He (Prime Minister Carney) has contacted me, so we’ll see what happens.” The Prime Minister’s office has not disclosed whether the White House has been contacted or the details of the negotiations.
Ontario Premier Doug Ford expressed concern about the tariff hikes and called on the federal government to impose a 50% retaliatory tariff on American steel and aluminium.
The United States imposes a 50% tariff on steel and aluminium imported from around the world. Canada is the United States’ largest source of both products.