US President Donald Trump warned of a 35 percent increase in tariff rates on imports from Canada.
This marks a sudden surge in the ongoing trade war between the US and Canada, two key trading partners and neighbors in North America.
Trump didn’t stop here and threatened more increases in tariffs on other trading partners of the US as well, media reports said.
It’s still unclear if the new rates will be applicable to all Canadian imports or only a few goods imported from Canada.
US President Says More Countries Will Face Tariffs
In the past few days, Trump has sent letters to leaders of multiple nations in which he informed them about the new tariffs applicable from August 1.
However, among all these nations, Canada is the biggest trading partner with the US.
Media reports also said that the nations yet to receive these letters will face a blanket tariff rate.
As of now, Washington charges a 10 percent tariff rate on all imports coming into the country.
However, Donald Trump has warned that he might increase the tariffs to twice the rate.
Meanwhile, Canada shipped $413 billion worth of goods to the US last year, the third-highest source of foreign goods.
A report by the Department of Commerce data said that Canada imported goods worth $349 billion last year.
The US-Canada Trade War: Who Wins, Who Loses?
Experts stated that increasing the tariffs on Canadian imports could backfire if Ottawa retaliates by imposing extra tariffs on American imports.
Earlier, Donald Trump also warned of new tariffs on dairy products of Canada.
Even before Trump became the president of the US, he had set his eyes on Canadian imports, when he vowed 25 percent tariffs on all the goods imported from Canada and Mexico.
However, Trump later said that only those goods that were outside the purview of the US-Canada-Mexico agreement would be charged higher.
The agreement was signed by Donald Trump in the first term of his office as American president.
Trump has also said that he wishes to see Canada join the US as its 51st state, an option that Ottawa has completely dismissed.
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