By Josh Boak, Associated Press
WASHINGTON (AP)-President Donald Trump said in a letter that he would raise taxes on many imported goods from Canada to 35%, deepening the rift between the two North American countries that had suffered a weakened blow to their decades of alliances.
Thursday’s letter to Canadian Prime Minister Mark Carney was an aggressive increase in the top 25% tariff that Trump worn in March after months of threats. Trump’s tariff is allegedly in an effort to make Canada crack down on fentanyl smuggling despite relatively simple trade in drugs from the country. Trump also expressed frustration with a trade deficit with Canada which mostly reflects the purchase of oil by America.
“I must mention that the Fentanyl school is not the only challenge we have with Canada, which has a lot of tariffs, and non-tariffs, trade policies and barriers,” Trump wrote in the letter.
A higher level will come into force August 1, creating a series of tense weeks ahead for the global economy as a new profit in the S&P 500 stock index shows that many investors think Trump will eventually resign on the increase. But the future of the stock market fell Friday morning in a sign that the wave of Trump tariffs might begin to cause concern among investors.
In a social media post, Carney said Canada would continue to work towards a new trade framework with the US and had made “vital progress to stop Fentanyl’s scourge.”
“Through current trade negotiations with the United States, the Canadian government firmly maintains our workers and business,” Carney said.
While some countries have received a tariff letter this week, Canada – America’s second largest trading partner after Mexico – has become a foil for Trump. This has imposed retaliation rates on US items and pushed back the president’s mockery making Canadian Canada 51. Mexico also faced a 25% tariff because of Fentanyl, but did not face the same public pressure from the President of the US Republic.
Carney was elected as Prime Minister in April with an argument that the Canadian must maintain a “elbow”. He has responded by keeping Canada from relationships that are interrelated with the US, trying to strengthen his relationship with the European Union and Britain.
A few hours before Trump’s letter, Carney posted on X’s picture with British Prime Minister Keir Starmer, saying, “In facing the challenges of global trade, the world switches to reliable economic partners like Canada.” Implied in its statement is that the US has become unreliable because the Trump tariff regime is a hacks, which has been through aggressive threats and reversal.
When Carney went to the White House in May, the public part of their meeting was friendly. But Trump said there was nothing that could be said by Canadian leaders to delete tariffs, saying, “as it is.”
Daniel Beland, a professor of political science at the University of McGill in Montreal, said Trump’s latest step would make it more difficult for Canada and the US to reach trade agreements, Belandant said.
“This does not mean that a new trade agreement between Canada and the United States is not possible, but it shows how difficult it is for the Canadian government to negotiate with the US president who regularly says threats and does not seem to be a reliable and honest interlocutors,” he said.
Trump has sent a series of tariff letters to 23 countries. The forms of the form became increasingly private with Canada and a Wednesday record that placed a 50% tariff in Brazil for the ongoing trial from his former president Jair Bolsonaro for trying to remain in the office after the defeat of the 2022 election. Trump was also charged with his efforts to cancel his selection losses in 2020 to Democrats Joe Biden.
Trump administrative officials said that Trump was trying to isolate China’s geopolitical rivals at tariffs, but the latest tariffs have damaged the message. Brazilian’s biggest trading partner is China, not the US, and Chinese government officials have framed import tax as a form of intimidation.
“Sovereign and non-interference equality in internal affairs are important principles of the UN Charter and basic norms governing international relations,” said Mao Ning, a spokesman for the Chinese Foreign Ministry. “The tariff should not be used as a tool for coercion, intimidation and disturbance in the internal affairs of other countries.”
The letters reflect the inability of Trump to complete the dozens of trade frameworks he claimed would be easily negotiated. Shortly after launching the “April 2 Liberation Day” tariff, the financial market selling action caused Trump to announce a 90 -day negotiation period where a 10% base line tariff will be charged to most imported goods.
But Trump has indicated that the tariff 10% tariffs mostly disappeared when he rearranged the tariff with his letters.
“We will only say that all the remaining countries will pay, whether it is 20% or 15%,” Trump said in a telephone interview with NBC News.
Trump has announced a trade framework with Britain and Vietnam, as well as separate agreements with China to enable sustainable trade talks. Trump boosted import tax for Chinese goods up to 145%, but after the conversation he said China faced a total of 55%tariffs.
In June, Trump said he suspected trade talks with Canada on his plan to continue his digital service tax, which would hit US technology companies. A few days later, the conversation continued when Carney canceled the tax.
Under the current tariff structure, the 2020 United States Mexican Canada agreement has protected goods that meet the requirements of Trump tariffs. But the Pact Review is scheduled for 2026.
Jim Morris contributed to this report from Vancouver, British Columbia.
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