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Brendan Smialowski / AFP via Getty Images |
Washington (Dipak Times): US President Donald J. Trump has thrown another bold punch in his America-first economic war — this time targeting long-time ally Canada with a massive 35% tariff on all Canadian goods starting August 1, 2025. The reason? A combination of Canada’s retaliatory trade moves, failure to stop fentanyl inflow, and a digital tax that Trump sees as a betrayal during negotiations.
While India watches from afar, this serves as yet another reminder: Weak borders and weak leadership invite tariffs, not trade.
Trump's Straight Talk on Truth Social:
Instead of working with the United States, Canada retaliated with its own Tariffs… We will now impose a 35% tariff on Canadian products from Aug 1… If Canada raises tariffs, we’ll simply add that on top of 35%.
He also warned that only Canadian companies that manufacture in the US would be spared. Classic Trump - forcing jobs back into America.
The Fentanyl Finger Pointing
Trump also slammed Ottawa for “not doing enough” to stop fentanyl smuggling, despite data showing less than 1% comes via Canada. Still, Canada’s own blame game—that America fuels its gang violence with illegal guns—has only worsened relations.
Markets Rattle, But MAGA Marches On
The S&P 500 futures dropped 0.6% and volatility surged, showing Wall Street’s nervousness. But Trump remains unfazed, fueled by strong growth, a bold currency, and rising nationalist support.
The Trade Reality:
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Canada: 3rd largest source of US imports in 2024 ($413B)
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US: Canada's #1 goods export destination ($349B)
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Total bilateral goods + services: was 2nd largest US trade partner
And yet, Canada tried flexing with a digital services tax and now faces the heat.
PM Carney’s Mild Response:
Canadian PM Mark Carney, clearly under pressure, stated on X that Canada will "continue to defend our workers" and seek a deal by August 1.
Thought Bubble:
Trump has sensed blood in the water — with weak Western allies like Canada waffling on trade deals and digital tax threats, he’s doubling down on tariffs to force compliance.
This move sends a clear signal to all nations (including China, Mexico, EU): Negotiate on Trump's terms - or face tariffs that bite.
Indian takeaway:
While the West fights over digital taxes and opioids, India should focus on strengthening strategic exports, boosting domestic manufacturing, and learning from Trump’s unapologetic style: national interest first, noise later.
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