US President Trump threatens 35% tariffs on Canadian imports starting August 1

US President Donald Trump has declared that Canadian goods imported will be subject to 35% tariffs starting on August 1.

Canada is the latest country to receive a letter from Trump addressed to Prime Minister Mark Carney.

It was the latest of more than 20 such letters issued by Trump since Monday, as he continues to pursue his trade war threats against dozens of economies.

Canada and the US have been locked in trade negotiations in hopes of reaching a deal by July 21, but the latest threat appeared to have shifted that deadline.

Both Canada and Mexico are trying to find ways to satisfy Trump so that the free trade deal uniting the three countries — known as the USMCA — can be put back on track

The United States-Mexico-Canada Agreement replaced the previous NAFTA accord in July 2020, after Trump successfully pushed for a renegotiation during his first term in office.

It was due to be reviewed by July next year, but Trump has thrown the process into disarray by launching his trade wars after he took office in January.

Canadian and Mexican products were initially hard hit by 25 per cent US tariffs, with a lower rate for Canadian energy.

Trump slammed both neighbors, claiming they did not do enough to combat illegal immigration and the flow of illicit drugs, particularly fentanyl across borders.

According to data from the Canadian and US governments, Canada supplies less than 1% of the substance to the unlawful US supply.

Trump eventually declared exemptions for items entering the nation under the USMCA, which covered a wide range of products.

The letter on Thursday came despite what had been warming relations between Trump and Carney, who has been faced with his counterpart’s regular musings that Canada should become the 51st US state.

The Canadian leader came to the White House on May 6 and had a cordial meeting with Trump in the Oval Office.

They met again at the G7 summit last month in Canada, where leaders pushed Trump to back away from his punishing trade war.

Canada also agreed to rescind taxes impacting US tech firms that had prompted Trump to retaliate by calling off trade talks.

Separately, Trump announced in an interview that he was also thinking of slapping blanket tariffs of between 15 and 20 per cent on August 1 on countries that had not yet received one of his letters.

The letters announce tariff rates of as much as 50 per cent in the case of Brazil to kick in on August 1 unless better terms can be found before then.

Brazilian President Luiz Inácio Lula da Silva said on Thursday that he is willing to negotiate with the United States after Trump said he would hit the country with his tough tariffs.

He, however, reiterated that the Brazilian government is evaluating reciprocity measures.

In his letter addressed to Lula, Trump criticised the treatment of his right-wing ally Jair Bolsonaro.