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Global News
6 minutes ago
- Global News
Trump raises tariffs on Canada to 35% with no trade deal in sight
U.S. President Donald Trump signed an executive order Thursday that will raise his tariffs on Canada to 35 per cent starting midnight Friday, a deadline he set for a new trade deal that has failed to materialize. The White House said Trump was raising the tariff rate because Canada 'has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs' into the U.S., as well as Canada's retaliatory tariffs on American goods. 'In response to Canada's continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25 per cent to 35 per cent to effectively address the existing emergency,' the White House said in a statement. Goods traded under the Canada-United States-Mexico Agreement on free trade (CUSMA) will continue to be exempted from the higher tariff, the White House confirmed. It added goods that are transshipped through other countries to avoid the 35 per cent rate will instead be charged a 40 per cent tariff. Story continues below advertisement Trump had earlier Thursday suggested many of the grievances he has repeatedly voiced about Canada, including its supply management system for the dairy industry and military spending, remain despite ongoing efforts to reach a trade and security deal. 'They have to pay a fair rate,' he told reporters at the White House. 'They've been very, very poorly led, and all we want is fairness for our country. 'We haven't spoken to Canada today. He's called, and we'll see,' he added, without specifying who he was referring to. 4:36 Trump stands firm on tariff deadline as negotiations come down to the wire with Canada Canada-U.S. Trade Minister Dominic LeBlanc is in Washington this week for ongoing negotiations toward a deal. His office declined to share an update on those talks when asked by Global News on Thursday. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy The Prime Minister's Office also declined to comment when asked if Prime Minister Mark Carney had reached out to Trump or the White House this week. Story continues below advertisement In July, Trump delayed his slew of global 'reciprocal' tariffs, including those on Canada and Mexico, to Aug. 1 with the intention of signing individual trade deals with hundreds of countries. Later that month, in a letter to Carney posted to Truth Social, Trump threatened a 35 per cent tariff on 'Canadian products sent into the United States, separate from all Sectoral Tariffs.' 'If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35 per cent that we charge,' the letter adds. The original 25 per cent tariff was introduced under an emergency provision related to the fentanyl epidemic that has fueled overdose deaths in North America. That order has been subject to court challenges, which led to the U.S. Court of International Trade briefly suspending them earlier this year, ruling Trump overstepped his presidential authority. A U.S. appeals court heard arguments in the case Thursday. Trump has long contended Canada has failed to combat the flow of fentanyl across the Canada-U.S. border. Canada has boosted border security and hired a fentanyl czar to oversee its federal strategy against the deadly opioid, and police forces have stepped up drug busts in recent months. 6:30 Canada's role in the U.S. fentanyl crisis Annual drug seizure statistics from the U.S. Customs and Border Protection agency show fentanyl from Canada accounts for around one per cent of all fentanyl seized at U.S. borders, with the vast majority coming from Mexico. Story continues below advertisement However, seizures at the northern border shot up to 11 and 14 kilograms in April and May, respectively, before dropping again to one kilogram last month. 'Fentanyl seizures at the northern border this fiscal year, with two months remaining, have surpassed total seizures of the past three years combined, underscoring Canada's escalating role in this crisis,' the White House said. 'The amount of fentanyl seized at the northern border to date this fiscal year could have killed more than 16 million Americans due to the drug's potency.' The statement added Canada's retaliatory tariffs 'further complicate bilateral efforts to address this escalating drug crisis.' Speaking to reporters on Wednesday, Carney said a deal had not yet been reached. 'We're seeking the best deal for Canadians. We have not yet reached that deal. Negotiations will continue until we do,' he said. 'It's possible that they (trade talks) may not conclude by the 1st of August,' Carney said at a press conference where he announced Canada's intent to recognize a Palestinian state by September, 'predicated' on several key democratic reforms. Trump escalated the situation on Thursday morning, saying Canada's decision to recognize a Palestinian state would make it 'very hard' to reach a trade deal. Story continues below advertisement He later said on Thursday the statement is 'not a dealbreaker' but added when asked about the talks, 'We'll see.' —with files from Global's Uday Rana
Vancouver Sun
6 minutes ago
- Vancouver Sun
Trump says he hasn't 'spoken to Canada' as Friday's deadline for 35% tariffs approaches
WASHINGTON — U.S. President Donald Trump has signed an executive order pushing tariffs on Canada to 35 per cent beginning on Friday. The White House confirmed the tariffs would not hit goods compliant with the Canada-U.S.-Mexico Agreement on trade, commonly known as CUSMA. Earlier Thursday, Trump said he has not 'spoken to Canada' as the Aug. 1 tariff deadline looms. Trump did say that 'he's called' — suggesting Prime Minister Mark Carney may have reached out hours before a 35 per cent tariff is set to hit Canada. The Canadian Press has contacted Carney's office for confirmation but has not yet received a response. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. The White House released a statement on Thursday saying that Trump has signed an executive order to increase the tariff. The statement again blames the hike on Canada's 'inaction' in stoping 'fentanyl and illicit drugs flowing across the northern border' — despite evidence that very little illicit fentanyl comes from Canada. Trump dampened expectations of a deal with Canada this week in a post on social media early Thursday morning. Trump said it will be very hard to make a deal with Canada after Carney announced Wednesday that Ottawa intends to recognize a Palestinian state. Trump told reporters at the White House Thursday he 'didn't like that' but that it was 'not a deal-breaker.' When asked about the holdup in Canadian negotiations, Trump said 'they have to pay a fair rate.' The president also misrepresented agricultural duties, complained about Canadian military spending and said Canada has been treating the United States badly for years. 'We like Canada, I love Canada, I have so many friends in Canada but they've been very poorly led,' Trump said. 'They've been very, very poorly led and all we want is fairness for our country.' Commerce Secretary Howard Lutnick told Fox Business Network that Carney's decision on Palestine was 'tone deaf' and he didn't see the president 'stepping off the gas.' He added that Canada hasn't 'solved dairy' and pointed to Ottawa's retaliatory tariffs that remain in place. If Carney calls Trump and 'turns on the charm,' removes retaliatory duties and 'stops the silliness,' the president might 'let it down a bit,' Lutnick said. Trump previously sent a letter to Carney threatening to impose 35 per cent tariffs if Canada doesn't make a trade deal by Friday. The White House has said those duties would not apply to goods compliant with the Canada-U.S.-Mexico Agreement on trade, better known as CUSMA. Trump did announce Thursday a 90-day extension on trade talks for Mexico after a phone conversation with President Claudia Sheinbaum. He said it was because the 'complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border.' 'Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many,' Trump said. 'We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer.' Mexico already recognizes a Palestinian state. White House Press Secretary Karoline Leavitt did not rule out further extensions and said there was still time for countries to negotiate ahead of the midnight deadline. 'I do know that other foreign leaders around the world have reached out,' she said. While Trump continued to claim in posts on social media that tariffs are making 'America GREAT & RICH Again,' the president's main tool for realigning global trade faced some sharp questions from federal appellate judges in court Thursday morning. The Trump administration's lawyer argued in the U.S. Court of Appeals for the Federal Circuit that there are still checks and balances on the president's powers and he has the authority to use a national security statute to impose duties — despite the fact that the word 'tariff' is found nowhere in the International Economic Emergency Powers Act of 1977. The act, usually referred to by the acronym IEEPA, gives the U.S. president authority to control economic transactions after declaring an emergency. No previous president had ever used it for tariffs and the U.S. Constitution reserves power over taxes and tariffs for Congress. Members of the 11-judge panel on Thursday repeatedly questioned the Trump's administration's justifications for using IEEPA to implement the so-called 'Liberation Day' and fentanyl-related tariffs 'If the president says there's a problem with our military readiness and he puts a 20 per cent tax on coffee, that doesn't seem to necessarily deal with (it)' said Chief Circuit Judge Kimberly Moore. Thomas Berry, with the Washington-based Cato Institute, said in a media statement that 'based on the tenor and questions of the arguments, it appears that the challengers have the better odds of prevailing.' The Cato Institute, which opposes the IEEPA tariffs, provided the hearing with an amicus brief — a legal submission from a group that's not party to the action. No decision was issued from the bench Thursday and Leavitt has said they expect the case to go before the Supreme Court. — With files from The Associated Press Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Edmonton Journal
6 minutes ago
- Edmonton Journal
Trump says he hasn't 'spoken to Canada' as Friday's deadline for 35% tariffs approaches
Article content Trump previously sent a letter to Carney threatening to impose 35 per cent tariffs if Canada doesn't make a trade deal by Friday. The White House has said those duties would not apply to goods compliant with the Canada-U.S.-Mexico Agreement on trade, better known as CUSMA. Article content Trump did announce Thursday a 90-day extension on trade talks for Mexico after a phone conversation with President Claudia Sheinbaum. He said it was because the 'complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border.' Article content 'Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many,' Trump said. 'We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer.' Article content Article content Mexico already recognizes a Palestinian state. Article content White House Press Secretary Karoline Leavitt did not rule out further extensions and said there was still time for countries to negotiate ahead of the midnight deadline. Article content 'I do know that other foreign leaders around the world have reached out,' she said. Article content While Trump continued to claim in posts on social media that tariffs are making 'America GREAT & RICH Again,' the president's main tool for realigning global trade faced some sharp questions from federal appellate judges in court Thursday morning. Article content The Trump administration's lawyer argued in the U.S. Court of Appeals for the Federal Circuit that there are still checks and balances on the president's powers and he has the authority to use a national security statute to impose duties — despite the fact that the word 'tariff' is found nowhere in the International Economic Emergency Powers Act of 1977. Article content Article content The act, usually referred to by the acronym IEEPA, gives the U.S. president authority to control economic transactions after declaring an emergency. No previous president had ever used it for tariffs and the U.S. Constitution reserves power over taxes and tariffs for Congress. Article content Members of the 11-judge panel on Thursday repeatedly questioned the Trump's administration's justifications for using IEEPA to implement the so-called 'Liberation Day' and fentanyl-related tariffs Article content 'If the president says there's a problem with our military readiness and he puts a 20 per cent tax on coffee, that doesn't seem to necessarily deal with (it)' said Chief Circuit Judge Kimberly Moore. Article content Thomas Berry, with the Washington-based Cato Institute, said in a media statement that 'based on the tenor and questions of the arguments, it appears that the challengers have the better odds of prevailing.'
