Trump sets 35% tariff on Canada from August 1, eyes 15%-20% tariffs for others

-


Mr. Trump informed Prime Minister Mark Carney of Canada that the new rate would take effect on August 1 and would increase in the event that Canada reacted.

A divide between two North American nations that have suffered a crippling blow to their decades-old relationship has been further exacerbated by U.S. President Donald Trump's announcement in a letter on Thursday, July 10, 2025, that he will raise tariffs on numerous imported goods from Canada to 35%.

Following months of warnings, Mr. Trump aggressively raised the top 25% tariff rates, which he originally imposed in March, in the letter to Canadian Prime Minister Mark Carney. Despite the comparatively low level of fentanyl trafficking from Canada, Mr. Trump allegedly imposed tariffs in an attempt to pressure that country to crack down on smuggling. Additionally, Mr. Trump has voiced his displeasure with a trade deficit with Canada that is mostly the result of American oil purchases.

In the letter, Mr. Trump commented, "I must mention that the flow of fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers."

Since recent rises in the S&P 500 stock index indicate that many investors believe Mr. Trump will eventually back down on the increases, the higher rates, which would take effect on August 1, would create a nervous few weeks for the global economy.

Canada, America's second-largest trading partner after Mexico, has become somewhat of a counterpoint to Mr. Trump, despite the fact that several other nations have received tariff letters this week. It has responded to the president's remarks about Canada being the 51st state by enacting retaliatory taxes on American exports. Although Mexico has also been subject to 25% tariffs due to fentanyl, it has not experienced the same kind of public pressure from Mr. Trump.

In April, Mr. Carney won the prime ministership on the platform that Canadians should remain "elbows up." In response, he has distanced Canada from its complex relationship with the United States in an effort to fortify ties with the United Kingdom and the European Union.

Mr. Carney shared a photo of himself with British Prime Minister Keir Starmer on X only hours before Mr. Trump's letter, writing, "The world is turning to reliable economic partners like Canada in the face of global trade challenges." His statement implied that Mr. Trump's chaotic tariff policy, which has involved forceful threats and reversals, had made the United States untrustworthy.

The public part of their encounter was friendly when Mr. Carney visited the White House in May. However, Mr. Trump claimed that the Canadian leader could not order him to lift the tariffs.

At the moment, Mr. Trump stated, "Just the way it is."

Comments

Post a Comment

Popular posts from this blog

Karnataka vegetable vendor hit with Rs 29 lakh GST notice. Here's why

-
Image
  Selling veggies for four years and accepting UPI has landed Shankargouda with a Rs 29 lakh GST notice on Rs 1.63 crore turnover. Shankargouda Hadimani, who runs a tiny vegetable shop near the Municipal High School grounds, has been asked to pay Rs 29 lakh under the Goods and Services Tax (GST) rules . Vegetable seller in Haveri gets Rs 29 lakh GST notice unexpectedly Fresh vegetables are GST exempt when sold directly from farmers Many small vendors have switched from UPI to cash A small vegetable seller from Haveri, Karnataka, has been left shocked after getting a huge tax notice. Shankargouda Hadimani, who runs a tiny vegetable shop near the Municipal High School grounds, has been asked to pay Rs 29 lakh under the Goods and Services Tax (GST) rules. Shankargouda has been selling vegetables for the last four years. Most of his customers pay through UPI or other digital wallets. The trouble started when GST officials sent him a notice claiming he had made transactions worth Rs 1.6...
Read more

India's UPI Surpasses Visa To Become World’s Top Real-Time Payment System: IMF

-
Image
India's UPI payments, handling 640 million daily transactions, surpassing Visa. UPI powers 85% of India's digital payments and 60% globally, now live in seven countries. India UPI Payments: India’s real-time payment technology UPI (Unified Payment Interface) has emerged as the global leader surpassing Visa, according to a recent note by the International Monetary Fund titled Growing Retail Digital Payments: The Value of Interoperability. The IMF report states that UPI has powered 85 per cent of India’s digital payments and nearly 60 per cent globally. UPI is handling 640+ million transactions daily, head of Visa, the report stated, adding that Rs 24 lakh crore processed via 18.39 billion UPI transactions in June 2025. The transaction percentage rose 32 per cent YOY compared to the same month last year at 13.88 billion.
Read more

India’s most underrated investment asset

-
Image
India's most underrated investment asset Some time ago, someone asked me what I considered the most underrated investment asset in India. It's the sort of question that could invite a dozen different answers, depending on your perspective. Depending on your perspective, you argue for practically anything. However, suppose one steps back and takes a wide-angle view of the entire savings landscape in India. In that case, there's only one possible answer: equity, and by extension, equity-backed mutual funds. This might sound counterintuitive, even illogical. After all, equity markets generate considerable noise in investment circles. The pink papers and the business channels are filled with stock analyses, market predictions, and trading strategies. Social media is full of tips, recommendations, and market commentary, good or bad. All in all, the equity markets seem anything but underrated or ignored. But here's the point that readers of this column probably don’t notice: ...
Read more