Trump Tariffs Likely Unavoidable For Canada, Says Prime Minister Mark Carney
Synopsis
Carney’s comments come after U.S. President Donald Trump threatened Canada, in a letter posted on Truth Social, to reach a trade agreement before August 1 or face higher tariffs of 35%.
Canadian Prime Minister Mark Carney reportedly said on Tuesday that it may not be possible for Canada to avoid U.S. tariffs.
“There is not a lot of evidence right, with regards to negotiations, of any country or jurisdiction,” escaping U.S tariffs, Carney told reporters in French, according a report by The Wall Street Journal.
The markets were mixed in afternoon trade on Tuesday. The Invesco QQQ Trust Series 1 (QQQ), which tracks the tech-heavy Nasdaq 100, rose 0.46% as Nvidia’s (NVDA) stock soared after the company said it will resume sales of its H20 AI chips to China. The SPDR Dow Jones Industrial Average ETF (DIA), however, was down 0.7% and the SPDR S&P 500 ETF (SPY) edged 0.09% lower.
Carney’s comments come after U.S. President Donald Trump threatened Canada, in a letter posted on Truth Social, to reach a trade agreement before August 1, or imports that are not compliant with the U.S.-Mexico-Canada trade treaty, also known as the USMCA, will face higher tariffs of 35%.
Trump also reiterated that transshipped goods will incur additional levies, while companies can avoid the steep tariffs if they decide to build or manufacture products in the U.S. Any retaliation will be met with tariffs raised to the same magnitude, the President said.
“If Canada works with me to stop the flow of Fentanyl, we will perhaps consider an adjustment to this letter,” he added.
Currently, the U.S. applies a 25% tariff on Canadian imports that don’t comply with the USMCA. Canadian goods are also subject to Trump’s sectoral tariffs, such as 50% levies on steel and aluminum, as well as a 25% tariff on vehicles assembled in Canada.
Trump also said that a 50% tariff on copper imports is set to take effect in August.
Read also: Trump Says US-Indonesia Deal Finalized, Yet To Disclose Details
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