The United States is set to put a 35 percent tariff on all goods coming from Canada starting August 1, according to an announcement made by President Donald Trump. The decision comes at a time when both countries are trying to work out new trade agreements.
The announcement was made through a letter that Trump posted on social media, addressing Canadian Prime Minister Mark Carney directly. This sudden move has created new problems in the already difficult relationship between the two countries.
According to The Washington Post, Trump’s 35 percent tariff bombshell has left Prime Minister Mark Carney scrambling to salvage economic partnership talks between the two nations. The Canadian government was in the middle of discussing new trade deals with the United States when this announcement came.
How the new tariffs will affect trade between the U.S. and Canada
The 35 percent tax on Canadian goods marks one of the biggest changes in trade policy between the two countries in recent years. This move is expected to affect a wide range of products that Canada exports to the United States, similar to how Trump’s other tariffs are making everyday goods more expensive for Americans.
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The timing of this announcement has caught many by surprise, as both countries were working on building a new economic partnership. The tariffs are likely to have a significant impact on Canadian businesses that rely heavily on trade with the United States.
Trade experts suggest that these new tariffs could lead to higher prices for American consumers who buy Canadian products, just as Trump’s other tariff plans are making basic items like fruits 25% more expensive. The decision also puts additional pressure on ongoing negotiations between the two countries.
The Canadian government is now faced with the challenge of protecting its economic interests while trying to maintain a working relationship with its largest trading partner. Prime Minister Carney’s office has indicated that they will continue to pursue diplomatic solutions to address this new trade barrier.
