U.S. President Donald Trump on Thursday signed an executive order increasing the tariff on Canada from 25 percent to 35 percent, with the higher tariff set to go into effect on Aug. 1, the White House said in a fact sheet, News.az reports citing CNN.
Trump increased the tariff rate “in response to Canada’s continued inaction and retaliation,” around stemming the flow of fentanyl into the US, according to a fact sheet on the executive order.
The fact sheet said that goods transshipped — that is, routed through another country — to avoid the 35% tariff would instead be taxed 40%.
Goods compliant with the United States-Mexico-Canada Agreement would not be subject to that higher rate, the White House said, which would blunt the impact of the tariffs.
Canada is the top buyer of US exported goods, importing $349 billion worth last year, according to Department of Commerce data, while Canada shipped $413 billion worth of goods to the US last year, the third-highest source of foreign goods.
