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Trump has heckled Canada for months and suggested it should
become its 51st U.S. state. He had threatened to impose the
higher tariff on Canada if no deal was reached by Friday, his
deadline for reaching trade agreements with dozens of countries.
Earlier Thursday, the president said Canada’s announcement it
will recognize a Palestinian state would "make it very hard” for
the United States to reach a trade agreement with its northern
neighbor. Trump has also expressed frustration with a trade
deficit with Canada that largely reflects oil purchases by
America.
Prime Minister Mark Carney had tempered expectations over
tariffs, saying Ottawa would only agree to a deal “if there’s
one on the table that is in the best interests of Canadians.”
In a statement released early Friday, he said he was
disappointed by Trump's actions and vowed to diversify Canada's
exports.
“Canada accounts for only 1% of U.S. fentanyl imports and has
been working intensively to further reduce these volumes,” he
said, pointing to heavy investments in border security.
Carney added that some industries — including lumber, steel,
aluminum and automobiles — will be harder hit, but said his
government will try to minimize the impact and protect Canadian
jobs.
Canada was not included in Trump's updated list of tariff rates
on other countries announced late Thursday. Those import duties
are due to take effect on Aug. 7.
Trump sent a letter to Canada a few weeks ago warning he planned
to raise duties on many goods imported from Canada to 35%,
deepening the rift between the two North American countries that
has undermined their decades-old alliance.
Some imports from Canada are still protected by the 2020 United
States-Mexico-Canada Agreement, or USMCA, which is up for
renegotiation next year.
The White House's statement said goods transshipped through
Canada that are not covered by the USMCA would be subject to a
40% tariff rate. It did not say where the goods might originate.
President Donald Trump said Thursday that there would be a
90-day negotiating period with Mexico after a call with that
country’s leader, Claudia Sheinbaum, keeping 25% tariff rates in
place.
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