President Donald Trump has launched a new attack on world trade partners with Canada, likely to be among the worst shots.
In a letter sent to his northern neighbor Trump said the United States would impose a 35% rate in the country at the beginning of next month.
Canada is the second American trading partner after Mexico and the largest buyer in American exports.
According to the Financial Times, an US government official said that Canada’s prices are “probably” raised for goods in accordance with the Trump Trade Agreement in 2020 with Canada and Mexico, but said that “no final decision” had been made. Such a decision could dull the impact of the higher rate.
The Canadian dollar slipped 0.6% compared to the US dollar before recovering to exchange 0.22%.
In a declaration on X, Canadian Prime Minister Mark Carney replied: “Throughout current commercial negotiations with the United States, the Canadian government has firmly defended our workers and businesses. We will continue to do so while we are working on the revised deadline on August 1. ”
Trump allegedly allegedly allegedly one of the reasons for the price hike. “If Canada is working with me to stop the fentanyl flow, we may consider an adjustment to this letter,” wrote Trump.
Carney replied: “Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect the communities of our two countries. ”
At the end of June, Carney canceled a tax on large American technological companies after Trump said it was a “blatant attack” and threatened to fill the business talks. The Canadian chief said the tax had been abandoned as part of “part of greater negotiation” on trade between the two countries.
Earlier Thursday, Trump told NBC News that EU nations should expect a pricing announcement targeting the block “today or tomorrow”. Countries that had not received a letter from him would face prices of 15 to 20%.
“We are just going to say that all the remaining countries will pay, whether 20% or 15%. We are going to resolve it now,” said Trump.
Trump’s “reciprocal” prices are currently set at 10%.
The American administration revealed Thursday that Trump had recently sent letters to 23 other countries threatening prices.
It provides prices of 30% on Algeria, 25% on Brunei, 30% on Iraq, 30% on Libya, 25% on Moldova, 20% in the Philippines and 30% on Sri Lanka.
Brazil faces a price of 50%, partly in response to the trial of its former president Jair Bolsonaro.
