A White House official, speaking on the condition of anonymity, revealed that the current administration plans to impose tariffs exclusively on goods that fail to comply with the 2020 United States-Mexico-Canada Agreement (USMCA). However, the official noted that the final decision regarding the details of these tariffs will ultimately rest with President Trump.
In a recent interview with NBC, President Trump hinted at the possibility of imposing tariffs ranging from 15% to 20% on all countries that have not reached a trade agreement with the United States. This potential move is part of a broader strategy to reshape U.S. trade policies and ensure compliance with existing agreements.
In a letter addressed to Canadian Prime Minister Mark Carney, which Trump shared on his social media platform, Truth Social, the president criticized Canada for its alleged “failure” to curb the smuggling of drugs into the U.S. He has consistently claimed that these tariffs serve as a form of retaliation against Canada for not doing enough to stop fentanyl from crossing the border, despite data suggesting that minimal amounts of the drug enter the U.S. through this route.
In response to Trump’s letter, Prime Minister Carney took to social media to express his government’s commitment to defending Canadian workers and businesses. He stated that Canada has made significant strides in addressing the fentanyl crisis in North America and reaffirmed his government’s dedication to working towards a revised deadline of August 1 for the negotiations.
Canadian Foreign Minister Anita Anand expressed optimism regarding the potential for a new economic and security agreement between the U.S. and Canada by the July 21 deadline. She emphasized the importance of the ongoing negotiations, noting that both countries’ teams are working diligently behind closed doors to achieve a mutually beneficial outcome for Canadian workers and businesses.
During the NBC interview, Trump also mentioned his intention to notify the European Union (EU) of impending tariffs that could affect its 27 member countries. The EU and the U.S. have been engaged in complex negotiations for several months, aiming to finalize a trade deal that would prevent tariffs on hundreds of billions of dollars worth of goods exchanged between the two entities.
Maroš Šefčovič, the EU’s chief trade negotiator, informed European lawmakers that negotiations are still ongoing and that, thus far, the EU has been able to avoid the direct impact of one of Trump’s letters.
As the Trump administration contemplates new tariffs and navigates the complexities of international trade relations, the focus remains on compliance with the USMCA and the ongoing negotiations with both Canada and the European Union. The outcomes of these discussions could significantly impact the economic landscape and trade dynamics in North America and beyond.
