MercoPress. South Atlantic News Agency

Trump announces 35% tariffs on Canadian products

The White House warned that goods transshipped to avoid the new tariffs would face an even higher rate of 40%

US President Donald Trump has raised the tariff rate on Canadian imports from 25% to 35%, effective August 1. The White House justified the increase by stating that Canada has not done enough to “arrest, seize, detain or otherwise intercept... traffickers, criminals at large, and illicit drugs.” Trump also announced Thursday a 90-day moratorium with Mexico after a call with President Claudia Sheinbaum, keeping 25% tariff rates in place.

Thursday's move came after months of escalating trade tensions and threats from the Republican leader. It also follows an announcement by Canadian Prime Minister Mark Carney that Canada would conditionally recognize a Palestinian state, a move Trump criticized for making a trade deal “very hard.”

“Wow,” posted Trump on social media. “Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!”

Meanwhile, White House Press Secretary Karoline Leavitt said that ”the president expressed his displeasure and his disagreement with the leaders of France, the United Kingdom, and Canada,” noting that recognizing Palestine would be “rewarding Hamas.”

While some Canadian exports are still protected by the US-Mexico-Canada Agreement (USMCA), which is set for renegotiation next year, Carney stated that industries like lumber, steel, aluminum, and automobiles will be hit hardest. He expressed disappointment in Trump's decision and vowed to minimize the impact on Canadian jobs by diversifying the country's exports.

The Prime Minister also recalled on X that “Canada has long been committed to a two-state solution for an independent, viable, and sovereign Palestinian state living side by side with the State of Israel in peace and security.”

In addition, Carney insisted that he would agree to a deal “if there's one on the table that is in the best interests of Canadians” and noted that “Canada accounts for only 1% of US fentanyl imports and has been working intensively to further reduce these volumes.”

The White House warned that goods transshipped to avoid the new tariffs would face an even higher rate of 40%.