The US has sharply increased tariffs on aluminum imports from Canada from 25% to 35% following the breakdown of trade talks.
Increase in Aluminum Tariffs
Late Thursday, the White House announced a rise in tariffs on aluminum from Canada. This marks a significant escalation in trade tensions between the two longtime allies. It is worth noting that Trump initially imposed a 25% tariff in March, which drew fierce criticism from Canadian officials.
Reasons for New Tariffs
The Trump administration claimed that Canada had not done enough to curb the flow of fentanyl and other illegal drugs into the US. In a fact sheet, the White House stated that Canada had allowed the export of fentanyl to become a significant part of its economy, despite the drug's deadly nature.
Response from Canada and Other Countries
There has been no immediate response from Canadian authorities. However, sources from the Canadian Trade Ministry indicated that they have several ways to respond. Notably, the US has also issued new tariffs against other countries, including India and Taiwan.
The increase in aluminum tariffs highlights the growing trade tensions between the US and Canada, posing risks for further deterioration of relations.
