Candies are for children; The surcharges are for the rest of the world. Trump, as a global distributor of economic sanctions, continues his tour, hitting allies and rivals in turn. Last target? Canada. However, a few weeks earlier, Mark Carney was still shaking his hand to the G7. But in terms of trade, the hugs do not protect. The global economy holds its breath, and Ottawa fears reprisals.
In short
- Trump imposes 35 % surcharge in Canada, despite a recent diplomatic rapprochement at the top of the G7.
- Products outside the USMCA, such as copper and automobile, are the first targeted by Washington.
- The Canadian economy, already exposed, vacillates under the threat of an imminent transcontinental tariff climbing.
- Financial markets react: Right, dollar Canadian down, slightly affected US indices.
A 35 % friendship: between hand handles and pricing uppercuts
Everything was almost good between Ottawa and Washington. On May 6, Trump warmly welcomed Mark Carney to the White House. Two months later, it is a threat letter that he sends him, accompanied bya surcharge of 35 %. “”If Canada cooperates to stop fentanyl, we will consider a revision of this decision“, He hammered.
The measure will take effect on August 1unless an agreement is signed by then. This new price is added to those already in place: 25 % on cars, 50 % on aluminum and steel, and 50 % on copper in August. The Canadian economy, very dependent on exports to the United States (68.3 % in May), is under pressure.
Trump also targets products not covered by the USMCA, which extends the scope of increases. The speech is firm, but the strategy remains unclear. Like the summarizes the BBC economic analyst : Current price volatility makes any long -term economic plan almost impossible.
Between exemptions and bluff: who is gaining in this economic showdown?
Not all products will be affected. L'USMCA free trade agreement Protects a large share of exchanges, especially in energy. “”It is unlikely that fertilizers, pharmaceuticals or agricultural components be taxed at 35 %“, specifies an advisor to the White House.
But in this Trade war 2.0the announcements sometimes make more noise than the measures themselves. The Canadian economy remains vulnerable, despite the red lines defined by existing agreements. Trump seems to play the bluff cardwhile keeping the credible threat.
The bellicose posture also targets Europe and Asia. Twenty countries have received similar letters. The administration rejected the Application on August 1leaving an open negotiation window. In this intimidation game, each country must choose between yielding or colliding to the price wall.
Mark Carney replied on X:
The Canadian government will defend its workers and businesses to the end. We remain engaged until the last minute.
When Trump threatens, the markets shuddled and the lucky economy
Behind each surcharge hides a shock wave. The American clues fell : The S&P 500 fell 0.33 %, proof that uncertainty earns the markets. The Canadian dollar weakened by 0.3 %, signal of distrust. During this time, Gold climbed 1.15 %refuge value of a climate that darkens. Bitcoin has also reacted by displaying a spectacular increase.
Trump claims to act for national security. But according to American customs, Canada is only responsible for 0.2 % of the fentanyl seized. The justification seems thin. In reality, this warning stroke targets wider: to assert its power as the electoral deadlines are approached and to remind the order of the partners.
In this shock strategy, the global economy is the real battlefield. Price diplomacy replaces negotiations and gives way to a permanent balance of power. And if some countries bow, others prepare reprisals.
When the figures speak stronger than tweets:
- Canada exports 68.3 % of its property to the United States;
- Imported copper will be taxed 50 % from August;
- The Canadian dollar dropped 0.3 % against the US dollar;
- The S&P 500 lost 0.33 %, assigned by commercial uncertainty;
- Only 0.2 % of the fentanyl seized comes from Canada.
The fear of a collapse of American economic supremacy pushes Trump to take out the claws. But in the shadows hovers another threat: the BRICS, which are preparing to meet. According to him, an unprecedented commercial war is looming. To avoid this shock, the price arsenal intensifies … until when?
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