Ottawa/CMEDIA: The U.S. President Donald Trump has threatened to hike tariffs on the Canadian goods from 25% to 35%
But Canada-U.S.-Mexico Agreement (CUSMA) compliant goods again are being exempt.
Expected to take effect Aug 1, Trump said the new rate could change again between now and then.
“These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” the president wrote at the end of a letter to Prime Minister Mark Carney.
The latest move has thrown off trade negotiations between the two countries had agreed to try and make a new economic deal by July 21, but Carney extended that deadline to Aug.
The U.S. tariffs on potash and energy are expected to remain at 10% pending final decisions by Trump.
Acknowledging the announcement on Thursday night, Carney said that the government has “steadfastly defended Canadian workers and businesses.”
“They called. I think it was fairly well-received,” Speaking to reporters on Friday, Trump said.
He also reiterated a familiar talking point about U.S. trading partners.
“We’ve been taken advantage of for many, many years by countries both friend and foe. And frankly, the friends have been worse than the foes in many cases,” he said. “So I would say, just keep working, it’s all going to work out.”
