Canada vows to protect economy as Trump threatens 35% tariff

Canada vows to protect economy as Trump threatens 35% tariff

By: IndoUS Tribune Staff

Canadian Prime Minister Mark Carney has pledged to defend the country’s workers and businesses after U.S. President Donald Trump announced a sweeping 35% tariff on all Canadian imports starting August 1. The move has triggered renewed tensions in North American trade relations.

Trump cited Canada’s alleged failure to stop the flow of fentanyl into the U.S. as the primary reason for the tariff hike. In a letter shared on social media, he warned the tariffs could be increased further if Canada takes retaliatory action, but also left room for negotiations.

“If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote.

Responding on X, Prime Minister Carney reaffirmed Canada’s progress in tackling the fentanyl crisis and said the government will continue defending its economic interests. “We are committed to working with the United States to save lives and protect communities in both countries,” he stated.

Carney also emphasized Canada’s broader economic goals: “The federal government, provinces, and territories are making major strides toward building one strong Canadian economy. We are also strengthening our global trade partnerships.”

The new tariff threat comes amid Trump’s escalating trade war. He recently announced similar tariffs on Japan and South Korea and a 50% duty on imported copper. He also hinted at more blanket tariffs on countries based on their trade and security cooperation.

While the 2020 USMCA trade deal exempted many Canadian goods from previous 25% tariffs, it remains uncertain whether those exemptions will remain under the upcoming measures.

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