
Canada punished as Trump unveils sweeping global tariffs
However, the levy increase comes after Mr Trump warned the country's decision to back a Palestinian state puts a trade deal between the two countries at risk.
On Wednesday night, Canada joined the UK in announcing that it would recognise a Palestinian state at the United Nations in September.
Following the announcement, Mr Trump said it would be 'very hard' for the US and Canada to strike a deal.
Mr Trump later added that he did not view the move as 'a deal breaker' in trade talks, however.
The tariff increase from 25 per cent to 35 per cent was a result of Canada's fentanyl crisis and its 'continued inaction and retaliation', the White House said.
Mr Trump had earlier told reporters that Canadian Prime Minister Mark Carney had called ahead of an August 1 tariff deadline, however, a conversation between the two did not take place.
Any country that fails to strike a deal with the US before Friday would be subjected to higher levies, Mr Trump said.
'We haven't spoken to Canada today. (Carney) called and we'll, we'll see,' Mr Trump said during an event at the White House before the 35 per cent rate was announced.
Mr Carney is yet to release a statement.
The Canadian leader previously said trade talks with Washington had been constructive, but that they may not conclude before the deadline.
Talks between the two countries were at an intense phase, he added, but a deal that would remove all US tariffs was unlikely.
'Well, they have to pay a fair rate - that's all. It's very simple. They have been charging very, very high tariffs to our farmers, some over 200 per cent and they've been treating our farmers very badly,' Mr Trump said, when asked about negotiations.
He added that while he loves Canada, it has treated the United States 'very badly' for years.
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