Trump sets 35% tariff rate on Canada

1 AUG, KATHMANDU/ AGENCY – Trump signed an executive order increasing tariffs on Canadian goods to 35% from 25% on all products not covered by the U.S.-Mexico-Canada trade agreement, the White House said.

The move – which Washington linked in part to what it said was Canada’s failure to stop fentanyl smuggling – is the latest blow in a months-long tariff war which Trump initiated shortly after taking power.

The announcement blaming Canada’s “continued inaction and retaliation” comes after Trump said Canadian Prime Minister Mark Carney reached out, but no conversations between the two took place.

Trump said earlier Thursday it would be “very hard” to make a deal with Canada after it gave its support to Palestinian statehood.

Carney’s office did not immediately respond to a request for comment.