U.S. President Donald Trump has escalated trade tensions with Canada, announcing on Thursday that starting August 1, the United States will increase tariffs on Canadian imports from 25% to 35%.
In addition, Trump revealed plans to impose 15% to 20% tariffs on other key trading partners in what appears to be a broader push to reshape U.S. trade dynamics.
According to Reuters, President Trump made the announcement via his social media platform, where he also shared a letter sent to Canadian Prime Minister Mark Carney. In the letter, Trump formally notified Canada of the new tariffs and warned that if Canada retaliated, the rates could increase further.
Prime Minister Mark Carney responded by stating that his government would continue diplomatic negotiations with U.S. officials to protect Canadian workers and businesses.
President Trump cited serious concerns in his letter, particularly about alleged fentanyl smuggling from Canada and various trade barriers that he claims are hurting American industries — especially U.S. dairy farmers. He stated that the current trade imbalance poses a threat to the U.S. economy and national security.
Trump added that he would be willing to reconsider or amend the tariff decision if Canada actively cooperated in addressing fentanyl smuggling concerns.
Canada, however, has denied these accusations, asserting that its involvement in fentanyl trafficking is minimal and that it is already taking steps to strengthen border security and combat illegal drug movement.
The announcement has sparked renewed concern among economists and trade analysts, who warn that escalating tensions between the two North American neighbors could have serious consequences for regional trade stability.
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