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Investing.com-- U.S. President Donald Trump on Thursday evening released a letter outlining a 35% trade tariff on Canada, citing in part the flow of Fentanyl from the country, as well as allegedly unfair trade practices.
Trump, in a letter addressed to Canadian Prime Minister Mark Carney, said the 35% duty will take effect from August 1, and will be separate from Trump’s sectoral tariffs, which include steep levies on commodities and automobile imports.
Trump warned against any retaliation, and said that his new tariffs were in part aimed at pressuring Ottawa into curbing the illegal flow of Fentanyl into the United States– a concern he had raised earlier.
Trump also alleged unfair trading practices employed by Canada that prevent U.S. businesses from selling to the country, including an up to 400% Canadian tariff on U.S. dairy products.
Trump claimed the trade balance was also a national security issue.
“There will be no tariff if Canada, or companies within your country, decide to build or manufacture production within the United States,” Trump said in the letter, adding that his administration would work quickly to approve such a move.
Trump said that he would “consider an adjustment” to the tariffs if Canada cooperated in stemming the flow of Fentanyl.
The Canadian tariffs come after Trump issued letters outlining steep duties against a host of major economies this week, which include a 25% levy on both South Korea and Japan.
The tariffs are mostly in line with the duties outlined by Trump in early-April, as part of his so-called “liberation day.” But the president did postpone the implementation of the tariffs to August 1 from a prior deadline of July 9, giving countries more time to hash out trade deals with Washington.