Trump Plans 35% Tariff Hike on Canadian Goods

An anonymous U.S. official has revealed that President Trump is planning to increase the tariff rate on certain Canadian goods from 25% to 35%, effective August 1. This move is part of a broader strategy to address trade imbalances and protect domestic industries. However, goods that comply with the United States-Mexico-Canada Agreement (USMCA) will continue to be exempt from these tariffs, ensuring that the trade agreement's provisions remain intact.

The decision to maintain the 10% tariff on specific Canadian products underscores the administration's strategy to target specific sectors while preserving broader trade relations. This move is a significant escalation in trade tensions between the United States and Canada, following Trump's previous imposition of a 25% tariff on goods that do not meet the USMCA criteria. The official emphasized that the plan is still tentative and has not been formalized in writing, indicating that the situation is fluid and subject to change.

The administration's dual approach seeks to balance the need for economic protectionism with the importance of maintaining stable trade relations. By increasing tariffs on non-USMCA compliant goods, the administration aims to pressure Canada into negotiating more favorable terms. However, the decision to exempt USMCA-compliant goods demonstrates a commitment to upholding the agreement's provisions, which have been a cornerstone of North American trade for years.

The official's statement highlights the administration's strategy to target specific sectors while preserving broader trade relations. This move is part of a broader strategy to address trade imbalances and protect domestic industries. By increasing tariffs on non-USMCA compliant goods, the administration aims to pressure Canada into negotiating more favorable terms. However, the decision to exempt USMCA-compliant goods demonstrates a commitment to upholding the agreement's provisions, which have been a cornerstone of North American trade for years.