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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
17 minutes ago
- AU Financial Review
Trump threatens 100pc chips tariff, but zero for investors like Apple
Washington | Donald Trump said he would impose a 100 per cent tariff on semiconductor imports, though would exempt companies moving production back to the United States, as Apple CEO Tim Cook and the president announced a fresh $US100 billion ($154 billion) investment plan from the Oval Office. 'We're going to be putting a very large tariff on chips and semiconductors, but the good news for companies like Apple is, if you're building in the United States, or have committed to build, without question, committed to build in the United States, there will be no charge,' Trump told reporters.
Sky News AU
17 minutes ago
- Sky News AU
Donald Trump hikes tariffs for India to 50 per cent as punishment for buying Russian oil
US President Donald Trump has imposed an additional 25 per cent tariff on India as punishment for its importation of Russian oil. The American leader says its continued purchase of Russian oil, some of which it onsells to third countries, including Australia, is a key to Moscow's war effort in Ukraine. The tariff comes into effect in three weeks and will be on top of a separate 25 per cent tariff to begin on Thursday, which takes the total tariff hike to 50 per cent. India claims the decision was 'unfortunate', adding it was importing the oil to provide energy security for its massive population at a good price. It also points to the vast quantities of uranium, plutonium, and fertiliser that the US buys from Russia.
Sydney Morning Herald
43 minutes ago
- Sydney Morning Herald
A seized $500 million Russian super yacht is up for sale amid fight over who actually owns it
The United States is auctioning off the $US325 million ($500 million) yacht Amadea, its first sale of a seized Russian luxury ship since the start of Moscow's invasion of Ukraine. The auction, which closes September 10, comes as President Donald Trump seeks to increase pressure on Russian President Vladimir Putin to end the war. The US has said it's working with allies to put pressure on Russian oligarchs, some of whom are close to Putin and have had their yachts seized, to try to compel him to stop the war. The 106-metre-long yacht, seized three years ago and currently docked in San Diego, was custom-built by the German company Lürssen in 2017. Designed by François Zuretti, the yacht features an interior with extensive marble work, eight state rooms, a beauty salon, a spa, a gym, a helipad, a swimming pool and an elevator. It accommodates 16 guests and 36 crew members. Determining the real ownership of the Amadea has been an issue of contention because of an opaque trail of trusts and shell companies. The yacht is registered in the Cayman Islands and is owned by Millemarin, also based in the Cayman Islands. The US contends that billionaire Suleiman Kerimov, an economist and former Russian politician, who was sanctioned by the US in 2018 for alleged money laundering, owns the yacht. Meanwhile, Eduard Khudainatov, a former chairman and chief executive of the state-controlled Russian oil and gas company Rosneft, who has not been sanctioned, claims to own it. US prosecutors say Khudainatov is a straw owner of the yacht, intended to conceal the yacht's true owner, Kerimov. Litigation over the true ownership of the yacht is ongoing. A representative of Khudainatov said in an emailed statement on Wednesday that the planned sale of the yacht is 'improper and premature' since Khudainatov is appealing a forfeiture ruling. 'We doubt it will attract any rational buyer at fair market price, because ownership can, and will, be challenged in courts outside the United States, exposing purchasers to years of costly, uncertain litigation,' said the representative, Adam Ford.
