Trump hikes tariff on Canada to 35pc, citing fentanyl
The announcement from the White House late Thursday said Canada had failed to "do more to arrest, seize, detain or otherwise intercept ... traffickers, criminals at large, and illicit drugs".
Trump has heckled Canada for months and suggested it should become its 51st US state.
He had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries.
Earlier on Thursday, the president said Canada's announcement it would recognise a Palestinian state would "make it very hard" for the United States to reach a trade agreement with its northern neighbour.
Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America.
Prime Minister Mark Carney had tempered expectations over tariffs, saying Ottawa would only agree to a deal "if there's one on the table that is in the best interests of Canadians".
In a statement released early on Friday, he said he was disappointed by Trump's actions and vowed to diversify Canada's exports.
"Canada accounts for only one per cent of US fentanyl imports and has been working intensively to further reduce these volumes," he said, pointing to heavy investments in border security.
Carney added that some industries - including timber, steel, aluminium and motor vehicles - would be harder hit, but said his government would try to minimise the impact and protect Canadian jobs.
Canada was not included in Trump's updated list of tariff rates on other countries announced late on Thursday.
Those import duties are due to take effect on August 7.
Trump sent a letter to Canada a few weeks ago warning he planned to raise duties on many goods imported from Canada to 35 per cent, deepening the rift between the two North American countries that has undermined their decades-old alliance.
Some imports from Canada are still protected by the 2020 United States-Mexico-Canada Agreement, or USMCA, which is up for renegotiation in 2026.
The White House's statement said goods trans-shipped through Canada that were not covered by the USMCA would be subject to a 40 per cent tariff rate.
President Donald Trump has raised the tariff rate on US imports from Canada to 35 per cent from 25 per cent, effective on Friday.
The announcement from the White House late Thursday said Canada had failed to "do more to arrest, seize, detain or otherwise intercept ... traffickers, criminals at large, and illicit drugs".
Trump has heckled Canada for months and suggested it should become its 51st US state.
He had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries.
Earlier on Thursday, the president said Canada's announcement it would recognise a Palestinian state would "make it very hard" for the United States to reach a trade agreement with its northern neighbour.
Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America.
Prime Minister Mark Carney had tempered expectations over tariffs, saying Ottawa would only agree to a deal "if there's one on the table that is in the best interests of Canadians".
In a statement released early on Friday, he said he was disappointed by Trump's actions and vowed to diversify Canada's exports.
"Canada accounts for only one per cent of US fentanyl imports and has been working intensively to further reduce these volumes," he said, pointing to heavy investments in border security.
Carney added that some industries - including timber, steel, aluminium and motor vehicles - would be harder hit, but said his government would try to minimise the impact and protect Canadian jobs.
Canada was not included in Trump's updated list of tariff rates on other countries announced late on Thursday.
Those import duties are due to take effect on August 7.
Trump sent a letter to Canada a few weeks ago warning he planned to raise duties on many goods imported from Canada to 35 per cent, deepening the rift between the two North American countries that has undermined their decades-old alliance.
Some imports from Canada are still protected by the 2020 United States-Mexico-Canada Agreement, or USMCA, which is up for renegotiation in 2026.
The White House's statement said goods trans-shipped through Canada that were not covered by the USMCA would be subject to a 40 per cent tariff rate.
President Donald Trump has raised the tariff rate on US imports from Canada to 35 per cent from 25 per cent, effective on Friday.
The announcement from the White House late Thursday said Canada had failed to "do more to arrest, seize, detain or otherwise intercept ... traffickers, criminals at large, and illicit drugs".
Trump has heckled Canada for months and suggested it should become its 51st US state.
He had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries.
Earlier on Thursday, the president said Canada's announcement it would recognise a Palestinian state would "make it very hard" for the United States to reach a trade agreement with its northern neighbour.
Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America.
Prime Minister Mark Carney had tempered expectations over tariffs, saying Ottawa would only agree to a deal "if there's one on the table that is in the best interests of Canadians".
In a statement released early on Friday, he said he was disappointed by Trump's actions and vowed to diversify Canada's exports.
"Canada accounts for only one per cent of US fentanyl imports and has been working intensively to further reduce these volumes," he said, pointing to heavy investments in border security.
Carney added that some industries - including timber, steel, aluminium and motor vehicles - would be harder hit, but said his government would try to minimise the impact and protect Canadian jobs.
Canada was not included in Trump's updated list of tariff rates on other countries announced late on Thursday.
Those import duties are due to take effect on August 7.
Trump sent a letter to Canada a few weeks ago warning he planned to raise duties on many goods imported from Canada to 35 per cent, deepening the rift between the two North American countries that has undermined their decades-old alliance.
Some imports from Canada are still protected by the 2020 United States-Mexico-Canada Agreement, or USMCA, which is up for renegotiation in 2026.
The White House's statement said goods trans-shipped through Canada that were not covered by the USMCA would be subject to a 40 per cent tariff rate.
President Donald Trump has raised the tariff rate on US imports from Canada to 35 per cent from 25 per cent, effective on Friday.
The announcement from the White House late Thursday said Canada had failed to "do more to arrest, seize, detain or otherwise intercept ... traffickers, criminals at large, and illicit drugs".
Trump has heckled Canada for months and suggested it should become its 51st US state.
He had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries.
Earlier on Thursday, the president said Canada's announcement it would recognise a Palestinian state would "make it very hard" for the United States to reach a trade agreement with its northern neighbour.
Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America.
Prime Minister Mark Carney had tempered expectations over tariffs, saying Ottawa would only agree to a deal "if there's one on the table that is in the best interests of Canadians".
In a statement released early on Friday, he said he was disappointed by Trump's actions and vowed to diversify Canada's exports.
"Canada accounts for only one per cent of US fentanyl imports and has been working intensively to further reduce these volumes," he said, pointing to heavy investments in border security.
Carney added that some industries - including timber, steel, aluminium and motor vehicles - would be harder hit, but said his government would try to minimise the impact and protect Canadian jobs.
Canada was not included in Trump's updated list of tariff rates on other countries announced late on Thursday.
Those import duties are due to take effect on August 7.
Trump sent a letter to Canada a few weeks ago warning he planned to raise duties on many goods imported from Canada to 35 per cent, deepening the rift between the two North American countries that has undermined their decades-old alliance.
Some imports from Canada are still protected by the 2020 United States-Mexico-Canada Agreement, or USMCA, which is up for renegotiation in 2026.
The White House's statement said goods trans-shipped through Canada that were not covered by the USMCA would be subject to a 40 per cent tariff rate.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
27 minutes ago
- Perth Now
Sydney prepares for bridge march
Tens of thousands of pro-Palestinian protesters are expected to stream across the Sydney Harbour Bridge on Sunday after the Supreme Court rejected a bid to block the anti-war march across the landmark. Conditions are expected to be wet for the rally, with the Bureau of Meteorology predicting 10 to 35mm of rain on Sunday, but organisers claim as many as 50,000 people could take part. Protesters will gather at Lang Park in the Sydney CBD at 1pm before marching across the bridge. Beginning at York and Grosvenor streets at 1.30pm, protesters will then file onto the bridge before finishing on the northern side of the bridge at Bradfield Park, according to rally organisers the Palestine Action Group. The march is expected to last three hours. Traffic on the bridge will be closed from 11.30am and is expected to be re-opened by 4pm. Residents and motorists are being urged to avoid the area having been warned of significant disruptions. Bus services will terminate in the CBD on the south side of the bridge and at North Sydney and St Leonards on the northern side. A massive pro-Palestinian protest is due to go ahead on the Sydney Harbour Bridge on Sunday. NewsWire / Damian Shaw. Credit: News Corp Australia Protest organiser Josh Lees. NewsWire/Jeremy Piper. Credit: News Corp Australia Trains will be running across the Harbour Bridge during the march, but delays are expected given the number of people predicted to be streaming into the city. Transport for NSW says that 'extensive' queues are expected at the entrance to the Sydney Harbour Tunnel, with a flow-on effect expected for the rest of the traffic network. Motorists are being urged to consider alternative routes and allow plenty of extra time, including going from the northern beaches and north shore to the airport. The Metro service will not in operation between Tallawong and Sydenham on Sunday due to trackwork. Buses will replace Metro services between Tallawong and Chatswood . Palestine Action Group organiser Josh Lees, who has been the public face of the group's push to hold the historic march across the bridge, hailed a NSW Supreme Court decision on Saturday as a 'huge victory for the Palestine movement in this country' Premier Chris Minns had publicly expressed his opposition to the march. Traffic will be closed on the Harbour Bridge for four and a half hours. Christian Gilles/NewsWire. Credit: News Corp Australia And the NSW Police made an application to the NSW Supreme Court to block the protesters being issued with a Form 1, which affords protesters protection from anti-assembly laws However Justice Belinda Rigg refused the Commissioner's application. 'The fact the proposed assembly is likely to cause significant inconvenience to residents … is far from determinative,' Justice Rigg said in her judgment. 'If matters such as this were to be determinative, no assembly involving inconvenience to others would be permitted.' The Palestinian Action Group said in a social media post: 'Tomorrow we are going to make history! 'We will hold a massive march over the Sydney Harbour Bridge, dedicated to using our people power to stop the genocide in Gaza. 'We are working with police and NSW transport to ensure a safe, family-friendly event for everyone.'
ABC News
an hour ago
- ABC News
Did Donald Trump just give China a major advantage on AI?
Last month, the Trump administration quietly reversed one of its own policies by lifting a ban on US tech giant Nvidia's H20 microchip exports to China. For anyone who has followed Donald Trump's erratic record on trade, another U-turn might not sound like a notable development. But this time, the stakes are much higher because these microchips are critical to powering the next generation of artificial intelligence. Whichever country dominates microchip production will likely lead the global AI race, with massive implications for military strategy and economic output. For nearly three years, the US has tried to keep these powerful chips out of China's hands. Now, by reopening the door, has Mr Trump handed Beijing a major advantage on AI? We spoke to three experts to explain how we got here. Back in April, the Trump administration banned H20 microchip exports to China, toughening restrictions put in place by the Biden administration. It has since reversed that decision. According to Jason Van Der Schyff, a fellow at Australian Strategic Policy Institute's technology and security program, this backflip may be in response to the booming black market demand for high-powered US chips in China. "Over a billion dollars worth of restricted chips were smuggled into China in just a few months," he said. "The reversal may be a pivot by the administration, recognising if you don't offer a legal channel for the slightly degraded chips, buyers will simply go around you." Professor Shahriar Akter, who specialises in the study of advanced analytics and AI at the University of Wollongong said this move seems to follow "a philosophy in Silicon Valley that if you sell more" it will pour more back into "your research and development". Associate Professor in Information Systems at Curtin University, Mohammad Hossain, suggested the Trump administration is trying to kill two birds with one stone. The US is trying to maintain leverage in a broader geopolitical trade-off involving China's critical exports, rare earth elements, while "keeping China dependent on US technology", he said. Nvidia is the tech giant behind these highly sought after microchips and it is led by CEO Jensen Huang who is the ninth-richest man in the world. The H20 is a step-down from Nvidia's top-tier chips (H100 and B200) and was specifically designed to comply with US export restrictions while catering to the Chinese market. "Basically, [H100 and B200 chips] can do things much faster than the H20," Mr Van Der Schyff said. "If we consider how quickly AI is moving any impediment that could be brought to time more than anything is going to maintain that US strategic advantage." While the H20 is less powerful, Mr Van Der Schyff warns that "these aren't toys … even slightly downgraded chips still enable model training at scale". "If you're concerned about national security, letting an adversary access chips that are only one rung down the ladder still poses a strategic risk." While the US hopes to stall China's progress in artificial intelligence, experts warn this strategy may have the opposite effect. China's push to dominate AI is already underway and restricting exports to only H20 chips incentivises them to accelerate domestic developments. "At present in the world, 50 per cent of AI researchers are being produced by China alone," Dr Akter said. Chinese tech giants like Huawei and Biren Technology have been ramping up their own AI accelerators. "Huawei's chips are already being deployed in major training clusters," Mr Van Der Schyff said. Still, China's domestic developments trail behind industry leaders like Taiwan's TSMC and South Korea's Samsung when it comes to cutting-edge manufacturing. "There isn't necessarily a danger that China catches up overnight but these restrictions do however give Beijing a clear incentive to sort of go all in on industrial policy for their own semiconductors to accelerate domestic progress," Mr Van Der Schyff said. "We've seen this play out previously with 5G and also with aviation." All three experts cautioned that it's difficult to gauge China's true AI capabilities. "Given the closed nature of China's systems and their propensity to not always tell us the truth", it's unclear how much China's artificial intelligence has developed, Mr Van Der Schyff said. Dr Akter used an analogy to explain the uncertainty: "There are two types of AI technologies", one is called glass box and the other is called black box. "Glass box technology is basically explainable AI, which is open source and we can explain where data is coming from and how it is being used to develop AI models and what would be the outcome." Whereas, black box technology is the opposite, we cannot trace back to the source of the data and we cannot tell what models have been used. That opacity makes it difficult for the rest of the world to assess whether Beijing is playing catch-up or quietly pulling ahead. The country that has the upper hand in microchip production will likely lead the global AI race and that has significant repercussions, experts said. "The country that dominates compute will dominate AI, and AI will shape everything from military planning to economic productivity."
The Age
an hour ago
- The Age
Trump's crypto mania poses a risk for our super
This distinct lack of guardrails, and the well-known volatility of crypto – data shows that over the past decade the cryptocurrency market has been almost five times as volatile as the US sharemarket – is one thing when it's young investors who are eager to take high risk for possible high reward. But it's another when people's retirements are involved. One of the most likely reasons for this loosening of regulations (gold and private investments are also set to be added to what US funds can invest in) is that the industry is under increasing pressure globally to find new investment options and maximise returns because of our ageing population. The pension system in the UK, for example, is expected to reach a crisis point within the next two decades, with many people predicted to retire with less than they may have expected. Loading You can see, then, why cryptocurrency suddenly looks promising. But here is where another likely reason for this shift also arises and, depending on your politics, is either a problem so glaring it might as well be an entire herd of elephants in the room, or is simply shrewd business ingenuity. The US government is currently led by a man who, along with his family, has a bitcoin mining farm and reserve. They have launched their own crypto coins, stablecoin and crypto trading app. It's estimated that $US2.9 billion ($4.5 billion) of the Trump family's wealth – roughly 40 per cent – is tied to their digital investments. And on Wednesday, the White House launched a 160-page document outlining how the government will bring to life the president's promise to bolster digital assets. Trump isn't just pro-crypto, he's driving the pro-crypto bus. Again, investing and being hungry for risk is one thing. But when the money being invested is retirement funds, it's a different ball game. Considering cryptocurrencies are still such a new asset class, there's no long-term performance data to assess their suitability for super investments. But already, there is a cautionary tale to look to. In 2022, a Canadian pension plan for teachers that invested in crypto lost $147 million in invested funds following the collapse of digital currency exchange FTX. While retirement funds are worth billions and $147 million might not sound like all that much in the grand scheme of things, try telling that to the hardworking teacher who was a year away from retirement and suddenly faced working longer due to bad investments. Currently in Australia, the only way to invest in crypto using superannuation is through a self-managed fund. But two things are worth noting here. The first is that there are more than 600,000 self-managed funds, and that with more than $750 billion in assets, they represent roughly a third of our national super sector. The second is that in February, soon after Trump's return to the White House, Australia's industry leaders and Treasurer Jim Chalmers travelled to the US for a 'super summit', in an attempt to try to win over American financial executives and the US government. Loading Currently, about $US400 billion of our super is invested in US assets, which translates to roughly 14 per cent of all Australian investments. However, that's expected to grow to more than $US1 trillion over the next decade. Whether these assets will one day include crypto remains to be seen. But the fact that American funds – which have the biggest pool of money in the world – now can more freely look to crypto than ever before, and that Australia is so hungry to remain economically close to the US, is something that should make us sit up and pay attention. Victoria Devine is an award-winning retired financial adviser, bestselling author and host of Australia's No.1 finance podcast, She's on the Money. She is also founder and director of Zella Money.
