U.S. President Donald Trump has followed through on his threat to raise tariffs on Canada from 25 percent to 35 percent starting on Aug. 1, with the White House saying the country has “failed” to stop the flow of fentanyl and other drugs into the United States through their shared border.
Products under the United States-Mexico-Canada Agreement (USMCA) continue to be exempt from the tariffs. The White House says products that are transshipped to evade the 35 percent tariff will be subject to a 40 percent rate. Canada is also subject to 50 percent sectoral tariffs on aluminum, steel, and copper.
“Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President’s actions to address this unusual and extraordinary threat to the United States,” the White House said in a statement on July 31….