Donald Trump’s latest tariff threat might not have as much impact on Canada as first feared — but no-one’s breathing easy just yet.
Trump said in a letter to Prime Minister Mark Carney Thursday that Canadian imports would face a 35-per-cent tariff as of Aug. 1 if no trade agreement is reached.
A White House official later clarified that the new tariff would only apply to goods that already face a 25-per-cent rate. That means goods that comply with the Canada-U.S.-Mexico Agreement would avoid the levy, as would energy and potash imports, which face a 10-per-cent rate.
The official also said no final policy paper has been drafted and Trump has not yet made a final decision.
A Carney government official told the Star it was still unclear to the Canadian government which goods the 35-per-cent tariff rate would apply to, despite U.S. media reports, citing Trump officials, suggesting it would only apply to the few goods not exempt under CUSMA and already hit with a 25-per-cent tariff.
The official also said there were no immediate plans for any further public statements or announcements from the Canadian government.
Foreign Affairs Minister Anita Anand told reporters in a media call-back from Malaysia on Thursday she was set to meet U.S. secretary of state Marco Rubio on Friday. But a scheduling conflict has cancelled that meeting, her office told the Star.
Canada also faces additional U.S. tariffs on steel, aluminum and automobiles, as well as a U.S. plan to introduce tariffs on copper on Aug. 1.
This is a developing story.
At Queen’s Park, Premier Doug Ford’s office said Trump’s latest threatened escalation puts more pressure on Ottawa.
“Now more than ever, we need the federal government to work around the clock to secure a deal that is right for Canada and eliminates all American tariffs,” Ford’s office said Friday.
The Ontario premier has been more hawkish than most Canadian political leaders in calling for reciprocal tariffs against the U.S.
This is a developing story.
With files from Mark Ramzy, Robert Benzie and Star wires
