Trump announces his intention to increase tariffs on Canada by 10%

SadaNews - U.S. President Donald Trump, while aboard Air Force One en route to Malaysia, announced his intention to increase tariffs on Canada by 10% "on top of what they currently pay", just days after ending trade talks with Ottawa due to what Trump described as a misleading announcement.

Trump announced the tariff increase in a post on "Truth Social" last Saturday evening, referring to an announcement aired by the Ontario provincial government in Canada, which included a video clip of late U.S. President Ronald Reagan, an icon for Republicans, stating that tariffs lead to trade wars and economic disasters.

In an attempt to address the situation, Canadian Prime Minister Mark Carney stated last Friday that Canada is ready to resume trade talks with the United States.

It is worth noting that Canada is currently subject to U.S. tariffs of 35%, although most Canadian goods are not included in that percentage due to exemptions granted under the North American Agreement that includes the United States, Mexico, and Canada.

However, steel and aluminum products do not benefit from this exemption, as they are subject to U.S. tariffs of 50% on foreign metals, while cars and trucks manufactured in Canada are not fully exempt from Trump’s 25% tariff on most imported vehicles.

Candice Ling, President of the Canadian Chamber of Commerce in Ottawa, stated in a press release, "Tariffs at any level are primarily a tax on America itself, and then on North American competitiveness as a whole. We hope these tensions will be resolved through diplomatic channels and further negotiations."

It is unclear what legal authority Trump will utilize to impose these additional tariffs on Canadian imports. The White House has not yet announced when the 10% increase will take effect or whether it will apply to all Canadian goods.

The Canadian economy has been severely affected by Trump’s tariffs, and the Canadian Prime Minister is trying to work with Trump to reduce them.

It is noted that more than three-quarters of Canadian exports go to the United States, with goods and services worth about CAD 3.6 billion (USD 2.7 billion) crossing the border daily.