Trump’s tariff threats on Canadian imports hit supply chains as experts raise alarms for local businesses

U.S President Donald Trump threatens tariffs on Canadian goods. He said that he will impose a 35% tariff on Canadian goods starting on 1 August. The announcement was made in the form of a letter published on Trump’s social media platform, Truth Social, along with additional threats of imposing blanket tariffs of 15% or 20% on most trade partners. 

Canadian Prime Minister Mark Carney said that his government would continue to protect his country’s workers and businesses as they head towards the new deadline but it will impact global trade and supply chain. 

Although, Trump has sent more than 20 such letters to other U.S. partners this week. He also says that he will soon announce new tariffs on the European Union. A blanket 25% tariff has already been imposed on some Canadian goods, with the nation also hit hard by Trump’s global steel, aluminium and auto tariffs- though there is a current exemption in place for goods that comply with a North American free trade agreement. 

U.S. Media is reporting that, for now, the Canada-United States-Mexico Agreement exemption would still apply to this latest tariff threat. Trump has also imposed a global 50% tariff on aluminium and steel imports and a 25% tariff on all cars and trucks not built in the U.S..

Canada also recently announced a 50% tariff on copper imports scheduled to take effect next month. Canada sells about three-quarters of its goods to the U.S. and is an auto manufacturing hub and a major supplier of metals, making the U.S tariffs especially damaging to those sectors.