Trump threatens Canada with 35 percent tariff rate starting 1 Aug - Economy
It was the latest of more than 20 such letters issued by Trump since Monday, as he continues to pursue his trade war threats against dozens of economies.
Canada and the US have been locked in trade negotiations in hopes of reaching a deal by 21 July, but the latest threat appeared to have shifted that deadline.
Both Canada and Mexico are trying to find ways to satisfy Trump so that the free trade deal uniting the three countries -- known as the USMCA -- can be put back on track.
"Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1," Carney posted on social media platform X Thursday night.
The United States-Mexico-Canada Agreement replaced the previous NAFTA accord in July 2020, after Trump successfully pushed for a renegotiation during his first term in office.
It was due to be reviewed by July next year, but Trump has thrown the process into disarray by launching his trade wars after he took office in January.
Canadian and Mexican products were initially hard hit by 25 percent US tariffs, with a lower rate for Canadian energy.
Trump targeted both neighbors, saying they did not do enough on illegal immigration and the flow of illicit drugs -- particularly fentanyl -- across borders.
Canada contributes less than one percent of the drug to the illicit US supply, according to Canadian and US government data.
Trump eventually announced exemptions for goods entering his country under the USMCA, covering large swaths of products.
The USMCA exemptions are poised to remain unchanged, Bloomberg reported, quoting an unnamed official.
The letter on Thursday came despite what had been warming relations between Trump and Carney, who has been faced with his counterpart's regular musings that Canada should become the 51st US state.
Reciprocity
The Canadian leader came to the White House on 6 May and had a cordial meeting with Trump in the Oval Office.
They met again at the G7 summit last month in Canada, where leaders pushed Trump to back away from his punishing trade war.
Canada also agreed to rescind taxes impacting US tech firms that had prompted Trump to retaliate by calling off trade talks.
Separately, Trump announced in an interview with NBC that he was also thinking of slapping blanket tariffs of between 15 and 20 percent on 1 August on countries that had not yet received one of his letters.
The letters announce tariff rates of as much as 50 percent in the case of Brazil to kick in on 1 August unless better terms can be found before then.
Trump told NBC that the letter to the 27-country European Union, the US's biggest trading partner, would be sent "today or tomorrow (Friday)."
Brazilian President Luiz Inácio Lula da Silva said on Thursday that he is willing to negotiate with the United States after Trump said he would hit the country with his tough tariff.
He however reiterated that the Brazilian government is evaluating reciprocity measures.
In his letter addressed to Lula, Trump criticized the treatment of his right-wing ally Jair Bolsonaro.
Follow us on:
Short link:
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily News Egypt
an hour ago
- Daily News Egypt
Al-Sisi welcomes Trump's remarks on Nile Dam, endorses US vision for ‘just peace'
Egyptian President Abdel Fattah Al-Sisi on Tuesday welcomed recent comments by US President Donald Trump regarding the Nile Dam in Ethiopia, voicing support for what he described as Trump's 'vision for achieving a just peace' in global conflict zones. In a statement shared on his official social media platforms, Al-Sisi praised what he called the US administration's 'serious efforts' to mediate international disputes and end wars. He expressed confidence in Trump's ability to help resolve complex issues—including ongoing conflicts in Ukraine, Palestine, and across Africa. Addressing the Nile dam dispute, Al-Sisi said Egypt values Trump's interest in securing a fair agreement that safeguards the interests of all stakeholders, while reaffirming Egypt's view of the Nile as a 'source of life' for its people. Trump's remarks came during a meeting Monday with NATO Secretary-General Mark Rutte, in which he referenced the Ethiopian dam, describing it as 'one of the largest in the world.' He added that it had 'stopped the flow of water to what's known as the Nile River'—a rare public alignment with Cairo's long-held concerns that GERD poses a potential threat to Egypt's water security. 'If I were Egypt, I'd want the water in the Nile,' Trump said, before adding, 'We believe this issue will be resolved very soon.' The comments sparked debate, particularly over Trump's apparent acknowledgment that the US had supported the dam's construction—an unexpected development amid longstanding tensions between Egypt and Ethiopia over Nile water rights. Negotiations over the Grand Ethiopian Renaissance Dam (GERD), have repeatedly stalled in recent years despite international mediation. Egypt fears the dam will significantly reduce its share of Nile water, while Ethiopia insists the project is essential for economic development and electricity generation.
Al-Ahram Weekly
an hour ago
- Al-Ahram Weekly
Stock markets dip as US inflation puts focus on Trump's tariffs - Economy
Most US and European share indices slid on Tuesday, as US inflation data indicated President Donald Trump's tariffs could be feeding into the American economy. In New York, the Nasdaq traded higher, propelled by buoyant news from tech darling Nvidia. But the blue-chip Dow and broader S&P 500 both struggled. The dollar gained ground as prospects of a US interest rate cut dimmed, while oil prices slipped. The US consumer price index for June showed inflation rose 2.7 percent compared with a year earlier. Though in line with economists' forecasts, the rate was above the Federal Reserve's two-percent target. Jochen Stanzl, an analyst at CMC Markets, said detail in the CPI report "points to a trend toward stagflation -- an unwelcome topic for investors in an increasingly overvalued market". Stephen Innes, managing partner at SPI Asset Management, said that "the CPI release showed some early signs of tariff pass-through but underlying inflation remains muted". Analysts said US inflation could pick up further in coming months, as businesses exhaust pre-tariff stockpiles and pass on their higher import costs to consumers. "Rising prices will make it harder for the Federal Reserve to cut interest rates and tougher for families living paycheck to paycheck," said Heather Long, chief economist at the Navy Federal Credit Union. Since April, the United States has imposed a baseline 10-percent tariff on goods imported from main trading partners, with steeper levies on steel, aluminium and cars. Trump has threatened 30-percent tariffs on European Union and Mexican goods from August 1 if they do not cut trade deals with Washington. Tariff threat to Russia Most Asian indices closed higher before the US inflation report came out, except for those in Shanghai and Mumbai. China and India are both big trading partners of Russia, which Trump said would be hit with tariffs of up to 100 percent within 50 days if President Vladimir Putin did not end his war on Ukraine. China, which has negotiated a US tariff truce, had on Tuesday issued economic growth data that met expectations, largely thanks to an April-June export surge to get ahead of Trump's levies. Even though Russia is a major crude producer, oil traders bid prices lower, not higher, following Trump's announcement. "The fact that oil prices fell suggests investors are relieved that Trump has allowed sufficiently enough time for Putin to agree to a ceasefire," said Fawad Razaqzada, analyst at "They are also getting used to Trump threating tariffs, only to change his mind in the last minute and extend deadlines," he said. OPEC said in its latest monthly market report it was holding firm on its production forecasts for oil demand to rise by 1.3 million barrels in 2025 and again in 2026. "Continued robust global economic growth is expected... despite ongoing US-centred trade challenges and geopolitical uncertainties," it said. In corporate news, US banks JPMorgan Chase, Wells Fargo and Citi posted strong second-quarter results. And Nvidia's share price jumped after it said US export restrictions will be eased to allow it to sell its H20 artificial intelligence chips to China. Key figures at around 1545 GMT New York - Dow: DOWN 0.6 percent at 44,190.75 points New York - S&P 500: FLAT at 6,267.11 New York - Nasdaq Composite: UP 0.6 percent at 20,771.85 London - FTSE 100: DOWN 0.7 percent at 8,938.32 (close) Paris - CAC 40: DOWN 0.5 percent at 7,766.21 (close) Frankfurt - DAX: DOWN 0.4 percent at 24,060.29 (close) Tokyo - Nikkei 225: UP 0.6 percent at 39,678.02 (close) Hong Kong - Hang Seng Index: UP 1.6 percent at 24,590.12 (close) Shanghai - Composite: DOWN 0.4 percent at 3,505.00 (close) Euro/dollar: DOWN at $1.1615 from $1.1670 Pound/dollar: DOWN at $1.3393 from $1.3428 Dollar/yen: UP at 148.87 yen from 147.77 yen Euro/pound: DOWN at 86.73 pence from 86.88 pence Brent North Sea Crude: DOWN 0.4 percent at $68.97 per barrel West Texas Intermediate: DOWN 0.5 percent at $66.66 per barrel Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
2 hours ago
- Al-Ahram Weekly
Ukrainians welcome US aid but see Trump's 50-day ultimatum to Putin as too long - War in Ukraine
Ukrainians welcomed U.S. President Donald Trump's pledge of more U.S.-made weapons in their three-year fight against Russia's invasion, though it is unclear what exactly they will get and how quickly. The time frame for the further arms deliveries, which European countries have agreed to pay for, is crucial. Russia is making a summer push to break through along the 1,000-kilometer (620-mile) front line, and its drones and missiles are hammering Ukrainian cities more than at any time in the war. Ukrainian President Volodymyr Zelenskyy thanked Trump for his 'willingness to support Ukraine.' In Kyiv, resident Nina Tokar, 70, said Tuesday that with more US weapons going to Ukraine 'maybe this will all end faster.' However, following Trump's threat late last week to impose major sanctions on Russia for failing to reach a deal to end the fighting, the American president said Monday that Moscow would get 50 days to come to a settlement or face 'very severe' economic sanctions. While some believe strict tariffs on Moscow could be a game changer, the decision to postpone them until September struck some European observers as being too long. Ukrainian officials made no direct comment about the 50-day window, but for Russia, the delay of new sanctions came as a reprieve. Senior Russian lawmaker Konstantin Kosachev commented: 'Oh, how much can change both on the battlefield and with the mood of those leading the US and NATO in 50 days.' Russian President Vladimir Putin hasn't budged when presented with previous US deadlines and threats. In an interview with the BBC broadcast Tuesday, Trump said of Putin: 'I'm disappointed in him, but I'm not done with him.' Russian Foreign Minister Sergey Lavrov said Moscow 'would like to understand what is behind this statement about 50 days,' noting that the Kremlin has offered to continue direct peace talks with Ukraine. 'Earlier, there were also the deadlines of 24 hours and of 100 days,' Lavrov said during an official trip to China. 'We've seen it all and really would like to understand the motivation of the US president.' An assessment published Tuesday by Chatham House noted that 'the exact details of what has been agreed remain hazy.' 'Putin will continue to judge Trump by his actions, not by his words — and so far, there is little enough action to be seen,' the London-based think tank said. Military experts are trying to figure out whether Russian forces could use the window left by Trump to achieve significant territorial gains. Russian troops are slowly ramming through the Ukrainian defenses in Ukraine's eastern Donetsk region, the main focus of the Russian offensive. They are also trying to carve out a buffer zone along the border with the northeastern Ukrainian regions of Sumy and Kharkiv. Russia currently holds about 20% of Ukraine. Ukraine's depleted army has recently been losing more territory, but there is no sign of a looming collapse on the front line, analysts say. Zelenskyy said he spoke to Trump after the Republican leader's Oval Office announcement Monday on weapons sales, expressing gratitude for the decision to send more Patriot air defense missiles that are vital to defend Ukrainian cities. 'We discussed … the necessary measures and decisions to provide greater protection for people from Russian attacks and strengthen our positions,' Zelenskyy said on Telegram. 'We agreed to talk more often and coordinate our steps in the future.' Trump and Zelenskyy have had a notoriously fraught relationship, and Washington's consent to providing more weaponry has eased Kyiv's worries. Even so, some Ukrainians felt the US decision won't alter the course of the war. 'If we take the situation as a whole, it hardly looks like this will fundamentally change anything,' Kyiv resident Oles Oliinyk, 33, told The Associated Press. Tokar, the Kyiv resident, was also skeptical. 'I have very little faith in (Trump). He says one thing today, and tomorrow he may say something else.' Dutch Foreign Minister Caspar Veldkamp expressed misgivings about the 50-day delay on sanctions. 'I do believe that the 50 days that Mr Trump has announced is rather long. It's up to September 2. I think that's rather long,' he said in Brussels on Tuesday. Much remains to be worked out about how and when the weapons, especially the Patriot systems, will be provided, Denmark's Foreign Minister Lars Løkke Rasmussen said. But, in an indication that Europe is relieved that the US hasn't walked away from the conflict, he added: 'The most important thing is that we now have an American readiness to deliver these most needed weapons.' Some European countries, such as Hungary and Slovakia, still rely heavily on Russia for energy supplies and could be hit hard by Trump's threatened secondary sanctions on countries that buy its oil and gas — an effort to isolate Moscow in the global economy. Lithuania's Foreign Minister Kęstutis Budrys said Trump's 50-day delay was a 'signal for Europe to prepare ourselves, because we still have some member states that are exposed to imports of oil and oil products from Russia.' German Defense Minister Boris Pistorius said it remains to be seen whether Trump's announcement will be a turnaround but 'what is decisive is that the tone has changed.' The president's threat to impose sanctions after 50 days is 'significant progress,' Pistorius told ARD television. Follow us on: Facebook Instagram Whatsapp Short link:
