Trump Threatens 35% Tariff on All Canadian Goods, Citing Fentanyl and Dairy
Ottawa, ON – U.S. President Donald Trump has issued a stark warning to Canada, threatening to impose a 35 percent tariff on all Canadian goods effective August 1st. The president stated on social media that the U.S. would escalate these levies if Canada retaliates.This move comes amidst ongoing trade discussions and follows a letter addressed to the Canadian Prime Minister.
The White House,according to an individual named Lutnick,aims to negotiate more favorable trade agreements with countries that open their economies to American producers,including ranchers,fishermen,farmers,and businesses. Lutnick indicated that imposing tariffs would be a fair response to nations that maintain trade barriers.
President Trump cited the flow of fentanyl from Canada into the U.S. as a primary justification for the proposed tariffs. However, available data suggests that minimal amounts of the drug cross the Canada-U.S. border compared to the U.S.-Mexico border.Additionally, Trump criticized Canada’s supply management system, a long-standing point of contention. He claims this system results in Canada imposing tariffs as high as 400 percent on American dairy products. Canadian tariffs on U.S. dairy imports are contingent upon exceeding the agreed-upon tariff-rate quotas under the USMCA. The U.S.-based International Dairy Association has stated that these quotas have not been met, attributing this to Canadian “protectionist measures” that restrict exports. The Canadian government has maintained its stance against dismantling the supply management system.