 "Trump imposes 35% tariffs on Canada starting August 1")
US President Donald Trump on Friday announced 35 per cent tariffs on Canadian exports, to take effect from August 1. Canada is the latest country to receive a letter from Trump addressed to Prime Minister Mark Carney.
“Instead of working with the United States, Canada retaliated with its own Tariffs. Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs,” Trump said in the letter, which he posted on his Truth Social platform.
It was the latest of more than 20 such letters issued by Trump since Monday, after he repeatedly threatened to simply decide a tariff rate for countries as negotiations continue over his “reciprocal” tariffs.
The development comes after the US and Canada resumed trade talks last month following a snag over Ottawa’s digital services tax on US tech companies. PM Carney revoked the digital services tax to facilitate the resumption of trade talks with Washington.
According to a Reuters report, citing White House officials, US President Donald Trump had urged Canada to drop its planned digital services tax during a G7 meeting earlier in June.
“It’s something they’ve studied, now they’ve agreed to, and for sure, that means we can get back to the negotiations,” Trump was quoted as saying.
Canada is the second-largest US trading partner after Mexico, and the largest buyer of US exports. It bought $349.4 billion of US goods last year and exported $412.7 billion to the US, according to US Census Bureau data.
Impact Shorts
More ShortsLast week, Canada’s national statistical agency said that trade with its neighbour to the south withered in May in the wake of a punishing tariff war launched by Trump.However, Canada made up part of the shortfall with increased shipments to other nations.
As exports to the United States fell for a fourth consecutive month, shipments to other nations rose to “a record high,” said Statistics Canada.
As a result, Canada’s share of exports destined to the United States fell from a monthly average of 75.9 per cent to 68.3 per cent. The agency said this was “one of the lowest proportions on record.”
With inputs from agencies
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