Trump slaps 35% tariff on Canada, eyes 15%-20% tariffs for others

U.S. President Donald Trump announced on Thursday that the United States will impose a 35% tariff on imports from Canada starting next month, and plans to levy blanket tariffs of 15% or 20% on most other trade partners.

In a letter shared on his social media platform, Trump informed Canadian Prime Minister Mark Carney that the new tariff rate will take effect on August 1, warning that it could increase if Canada retaliates.

Trump has recently expanded his trade offensive, introducing new tariffs against several countries, including close allies such as Japan and South Korea. He has also imposed a 50% tariff on copper.

More tariffs on the way

Speaking to NBC News in an interview published Thursday, Trump said that other trade partners who haven’t yet received formal notification may still be subject to blanket tariffs.

"Not everybody has to get a letter. You know that. We're just setting our tariffs," Trump told the network.

"We're just going to say all of the remaining countries are going to pay, whether it's 20% or 15%. We'll work that out now," he added.

Canada's response

"Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1," Carney posted on social media platform X Thursday night.

The United States-Mexico-Canada Agreement replaced the previous NAFTA accord in July 2020, after Trump successfully pushed for a renegotiation during his first term in office.

It was due to be reviewed by July next year, but Trump has thrown the process into disarray by launching his trade wars after he took office in January.

Canadian and Mexican products were initially hard hit by 25 percent US tariffs, with a lower rate for Canadian energy.

Trump targeted both neighbors, saying they did not do enough on illegal immigration and the flow of illicit drugs across borders.

But he eventually announced exemptions for goods entering his country under the USMCA, covering large swaths of products.

The letter on Thursday came despite what had been warming relations between Trump and Carney, who has been faced with his counterpart's regular musings that Canada should become the 51st US state.