President Donald Trump has launched a contemporary assault on international buying and selling companions with Canada more likely to be among the many worst hit.

In a letter despatched to its northern neighbor late on Thursday, Trump mentioned the U.S. will impose a 35% tariff on the nation in the beginning of subsequent month.

Canada is the second-largest U.S. buying and selling accomplice after Mexico, and the most important purchaser of U.S. exports.

In line with the Monetary Occasions, a U.S. authorities official mentioned the tariffs on Canada would “probably” be waived for items that complied with the phrases of Trump’s 2020 commerce settlement with Canada and Mexico, however mentioned “no ultimate choices” had been made. Such a transfer might blunt the influence of the upper tariff.

The Canadian greenback slid 0.6% in opposition to the U.S. greenback earlier than recovering to commerce 0.22% down.

In an announcement on X, Canadian Prime Minister Mark Carney responded: “All through the present commerce negotiations with the US, the Canadian authorities has steadfastly defended our employees and companies. We’ll proceed to take action as we work in the direction of the revised deadline of August 1.”

Trump alleged in his letter that the stream of fentanyl from Canada was one motive for the tariff hike. “If Canada works with me to cease the stream of Fentanyl, we are going to, maybe, contemplate an adjustment to this letter,” Trump wrote.

Carney responded, “Canada has made very important progress to cease the scourge of fentanyl in North America. We’re dedicated to persevering with to work with the US to avoid wasting lives and shield communities in each our international locations.”

In late June, Carney scrapped a tax on massive U.S. know-how companies after Trump mentioned it was a “blatant assault” and threatened to name off commerce talks. The Canadian chief mentioned the tax was dropped as “a part of a much bigger negotiation” on commerce between the 2 international locations.

Earlier on Thursday, Trump informed NBC Information that EU nations ought to count on a tariff announcement concentrating on the bloc “at the moment or tomorrow.” Nations that had not acquired a letter from him would face tariffs of 15-20%.

“We’re simply going to say the entire remaining international locations are going to pay, whether or not it’s 20% or 15%. We’ll work that out now,” Trump mentioned.

Trump’s “reciprocal” tariffs are at present set at 10%.

The U.S. administration revealed Thursday that Trump had lately despatched letters to an extra 23 international locations threatening tariffs.

He plans tariffs of 30% on Algeria, 25% on Brunei, 30% on Iraq, 30% on Libya, 25% on Moldova, 20% on the Philippines, and 30% on Sri Lanka.

Brazil faces a 50% tariff, partially as a response to the trial of its former president Jair Bolsonaro.