Trump intensified the trade war with Canada
US President Donald Trump has intensified the trade war against Canada. This was reported by Zamin.uz.
He stated that reaching a tariff agreement set for August 1 is very difficult. The main reason for this decision is that the Canadian government recognized the state of Palestine.
If the parties cannot reach an agreement by the deadline, the US will impose a 35 percent tariff on products coming from Canada. This tariff will apply to all products not covered by the US-Mexico-Canada trade agreement.
Trump expressed his opinion on his social media page and emphasized that Canada's recognition of Palestine complicates the trade agreement. Canada is considered an important trading partner for the US.
In 2024, the US exported $349.4 billion worth of goods to Canada, while Canada supplied $412.7 billion worth of goods to the US. Additionally, Canada is the largest supplier of steel and aluminum to the US.
In July, Canada canceled the digital services tax imposed on US technology companies. Trump described this as an open attack and had suspended negotiations.
On July 30, Canada officially announced its recognition of the state of Palestine and stated that it would confirm this decision at the UN meeting in September. Canada is focusing on the famine and humanitarian crisis in Gaza.
