New Trade Move Sparks Diplomatic Pushback!
Donald Trump has reignited trade tensions with one of America’s closest allies. On August 1, his newly imposed tariff hike drew sharp criticism from Canadian Prime Minister Mark Carney.
Trump Announces New Tariff Hike
Back in April, Trump introduced a sweeping 10% baseline tariff on nearly all imports. He claimed the policy would push consumers toward American-made goods. The announcement included a 90-day negotiation window, which was later extended. That deadline ended today.
Canada, a key U.S. trade partner, was hit hard. Their existing 25% tariff rose to 35% as of 4 A.M., escalating costs on cross-border trade. However, most Canadian goods will remain exempt under an existing trade agreement.
Carney Condemns U.S. Move
In a strong response, Prime Minister Mark Carney condemned the decision. Calling the action “disappointing,” he pledged to focus on strengthening Canada’s economy from within.
Canadians will be our own best customer,” Carney said. “We can give ourselves more than any foreign government can ever take away by building with Canadian workers and using Canadian resources.”
Fentanyl Link Sparks Controversy
Carney also pushed back against the U.S. justification for the tariff hike—fentanyl trafficking. The U.S. cited cross-border drug flows as the reason for the increase, despite Canada accounting for just 1% of America’s fentanyl imports.
The Canadian government emphasized its efforts in tackling the issue.
“Canada is making historic investments in border security,” the statement read, citing new officers, aerial surveillance, intelligence operations, and tough new legislation.
Mexico and China Still in Play
While Canada faces higher tariffs, Mexico received a temporary extension. Trump confirmed that Mexican imports would remain at current rates for another 90 days.
Meanwhile, U.S.-China negotiations continue. Both sides had previously raised tariffs on each other’s goods to over 100%, though they’ve since stepped back—at least for now.