Trade Turbulence: Trump's Tariff Tactics Against Canada

In a significant escalation of trade tensions, U.S. President Donald Trump has announced plans to impose a 35% tariff on Canadian goods not covered under the existing trade agreement, should the two nations fail to reach a consensus by August 1. This move comes in response to Canada's backing of Palestinian statehood.

Trump expressed his concerns on Truth Social, highlighting the potential impact of Canada's decision on trade relations between the countries. Meanwhile, Canadian Prime Minister Mark Carney noted that discussions with Washington had been productive, yet a complete removal of U.S. tariffs seemed unlikely before the deadline.

Canada, a major trading partner and notable supplier of steel and aluminum to the U.S., faces numerous trade challenges. Carney announced plans to recognize the State of Palestine at the upcoming United Nations meeting, a decision criticized by both the United States and Israel.

(With inputs from agencies.)