US Raises Canadian Tariffs to 35% amid Widening Trade War
US Raises Canadian Tariffs to 35% amid Widening Trade War

US Raises Canadian Tariffs to 35% amid Widening Trade War

News summary

President Donald Trump has raised U.S. tariffs on certain Canadian goods from 25% to 35%, escalating an ongoing trade war that has significantly impacted Canadian businesses and consumers. Despite hopes from Canadian negotiators for a more favorable deal, the tariff increase took effect on August 1 and has led to higher prices on products like steel-based appliances, automobiles, and various food items, with Canadian retailers labeling thousands of goods to indicate tariff-related price hikes. In response, Canada has imposed its own tariffs on U.S. products such as ketchup, washing machines, and clothing, while Canadian leaders emphasize continued commitment to the Canada-United States-Mexico Agreement (CUSMA) and efforts to protect jobs and diversify markets. The U.S. justified the tariff rise partly due to concerns over fentanyl flow, though Canada accounts for only 1% of U.S. fentanyl imports and has increased border security investments to combat drug trafficking. The trade tensions have also affected cross-border travel and strained U.S.-Canada relations, prompting some Canadian businesses and consumers to adopt a more patriotic stance by avoiding American products. Overall, the tariff conflict is expected to continue causing economic strain and complicating bilateral ties between the neighboring countries.

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