President Donald Trump intensified his price offensive against Canada on Thursday, announcing the taxation of a 35% tax on Canadian imports next month, as well as his intention to apply generalized customs duties of 15% or 20% to most other business partners.
In a letter broadcast on his social platform, Trump informed Canadian Prime Minister Mark Carney that this new rate would come into force 1is August and would be noted if Canada decided to retaliate.
In a publication on X late Thursday, Mark Carney said that his government would continue to defend Canadian workers and businesses during negotiations with the United States for future deadlines.
The 35% tax represents an increase compared to the current rate of 25% imposed by Trump in Canada, and constitutes a setback for Carney, who sought to conclude a trade agreement with Washington.
An exemption for products covered by the United States-Mexico-Canada (AEUMC) agreement should remain in force, and customs duties of 10% on energy and fertilizers should not evolve either, although no final decision has been taken on these files, according to an official of the US administration.
In his letter, Trump complained about the fentanyl flow from Canada, as well as Canadian pricing and non -tariff barriers that penalize American dairy producers and other sectors. He said the trade deficit threatened the United States’s economy and national security.
“If Canada is collaborating with me to stop the fentanyl flow, we may consider adjusting this letter,” wrote Trump.
Canadian officials say that a tiny quantity of fentanyl comes from Canada, but stresses that they have strengthened border security.
“Canada has made essential progress to stop the scourge of fentanyl in North America. We remain determined to work with the United States to save lives and protect the communities of our two countries, “added Carney on X on Tuesday evening.
The Prime Minister said last month that he had agreed with Trump to conclude a new economic and security agreement within 30 days.
Concerns about European taxes
Trump has expanded his trade war in recent days, imposing new customs duties on several countries, including the South Japan and Korea allies, as well as a 50% tax on copper.
His last salvo again shaken investors: American and European term markets bent in Asia on Friday, while operators nervously awaited the announcement of the rate that Trump would apply to the European Union later in the day.
“The possible climbing between the EU and the United States is a major issue for the financial markets,” said Joseph Casto, head of the international economy at the Commonwealth Bank of Australia. “If we are witnessing something similar to the Sino-American trade war in April, it will be very destabilizing. »»
In an interview with NBC News on Thursday, Trump said that other business partners who have not yet received a similar letter may also be the subject of generalized customs duties.
“Not everyone needs to receive a letter. We simply fix our prices, “he said during the interview.
“We will simply announce that all the remaining countries will have to pay, whether 20% or 15%. We will settle this now, “he added, according to NBC.
The leader of the Myanmar military junta asked Trump to lower the rate of 40% applied to Burmese exports to the United States to 10-20%, and says he is ready to send a delegation to Washington to negotiate if necessary, according to state media on Friday.
The President of the Philippines must meet Trump this month in Washington for the first time, and will address the issue of the 20%tax, said the Filipino Minister for Foreign Affairs.
Canada is the second trade partner in the United States after Mexico, and the main buyer of American products. He bought $ 349.4 billion in American products last year and exported 412.7 billion to the United States, according to data from the US census office.
Mark Carney, who led his Liberal party to a surprise electoral victory earlier this year with the promise to take up trade challenges with the United States, aimed to negotiate an agreement with this key partner by July 21.
In his letter, Trump did not specify the state of progress of commercial negotiations, but said that “customs duties could be changed, upwards or down, depending on our relationship with your country”.
Last month, the Carney government abandoned a digital services tax project targeting American technological giants, after Trump suddenly interrupted commercial discussions, qualifying this tax of “blatant attack”.
