Trump slaps 35 per cent tariff on neighbour Canada
President Donald Trump says the United States will impose a 35 per cent tariff on imports from Canada and plans to impose blanket tariffs of 15 or 20 per cent on most other trade partners.
In a letter released on Thursday on his social media platform, Trump told Canadian Prime Minister Mark Carney the new rate would go into effect on August 1 and would go up if Canada retaliated.
Trump has broadened his trade war in recent days, setting new tariffs on a number of countries, including allies Japan and South Korea, along with a 50 per cent tariff on copper.
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By continuing you agree to our Terms and Privacy Policy.In an interview with NBC News published on Thursday, Trump said other trading partners that had not yet received such letters would likely face blanket tariffs.
“Not everybody has to get a letter. You know that. We’re just setting our tariffs,” Trump said in the interview.
“We’re just going to say all of the remaining countries are going to pay, whether it’s 20 per cent or 15 per cent. We’ll work that out now,” Trump was quoted as saying by the network.
US and European stock futures slid in Asia on Friday after the President stepped up tariff threats against Europe and Canada, snuffing out an early rally in regional share markets.
Both Nasdaq futures and S&P 500 futures fell about 0.4 per cent. EUROSTOXX 50 futures dropped 0.6 per cent.
The euro slipped 0.3 per cent to $US1.1668 ($A1.7777), while the dollar gained 0.4 per cent to C$US1.3704 ($A2.0879).
Earlier in the week, Trump pushed back his tariff deadline of July 9 to August 1 for many trading partners to allow more time for negotiations, but broadened his trade war, setting new tariffs on a number of countries, including allies Japan and South Korea, along with a 50 per cent tariff on copper.
“We consider it very unlikely the US government can agree on even ten more trade frameworks by 1 August,” said Joseph Capurso, head of international economics at the Commonwealth Bank of Australia.
“The upshot is tariff rates will soon be increased sharply again for many economies, or another extension for negotiations will be granted.”
