Canada will face a 35% tariff on exports to the United States, effective August 1, President Donald Trump said in a letter to Prime Minister Mark Carney.

This is the latest of more than 20 similar letters sent by Trump since July 7, as he continues to threaten dozens of economies with a trade war, AFP reported.

Canada and the US are in trade negotiations hoping to reach an agreement by July 21, and the latest threat appears to jeopardize that deadline.

Canada and Mexico are trying to find ways to satisfy Trump so that the free trade agreement uniting the three countries — known as USMCA — can be restored.

The agreement between the US, Mexico, and Canada replaced the previous NAFTA agreement in July 2020, after Trump successfully insisted on renegotiation during his first term.

It was due to be reviewed by July next year, but Trump accelerated the process by starting trade wars after taking office in January.

Canadian and Mexican products were initially hit hard by 25% tariffs from the US, with a lower rate for Canadian energy.

The US president turned his attention to the two neighbouring countries, saying they were not doing enough to tackle illegal immigration and the flow of illegal drugs across their borders.

Ultimately, however, he announced exemptions for goods entering his country under the USMCA, which cover a large portion of products. Potash, used as fertilizer, also received a lower rate.

The July 10 letter came despite a warming of relations between Trump and Trudeau.

The Canadian prime minister visited the White House on May 6 and had a cordial meeting with Trump in the Oval Office.

They met again at the G-7 summit last month in Canada, where leaders pressed Trump to abandon his punitive trade war. | BGNES