Decision comes amid escalating trade tensions between the two countries and before a deadline to negotiate a deal
Decision comes amid escalating trade tensions between the two countries and before a deadline to negotiate a deal
Donald Trump signed an executive order on Thursday increasing tariffs on Canadian goods imported to the United States from 25% to 35%.
The new import tax rates goes into effect on Friday, according to a White House factsheet. The tariff would cover all products not covered by the US-Mexico-Canada trade agreement. Goods transshipped to another country to evade the new tariffs would be subject to a transshipment levy of 40%.
The decision comes after months of tariff threats from the Trump administration, and escalating trade tensions that have sowed anger in Canada.
It was announced just hours before a 1 August deadline Trump had imposed on many countries to reach a trade deal with the his administration.
The White House said on Thursday evening that Trump had increased tariffs on Canada because the country had failed to act on “the public health crisis caused by fentanyl and illicit drugs flowing across the northern border into the United States”.
