President Donald Trump said the US will put a 35% tariff on some imports from Canada, escalating the tensions between two countries that have impaired one of the world’s largest trading relationships. The new rate represents an increase from the 25% tariffs Trump imposed in early March under an emergency law. …But the US administration kept in place an exemption for goods traded under the rules of the US-Mexico-Canada trade agreement. US automakers and other companies with integrated North American supply chains had pushed for that carve-out, which has allowed US importers to continue bringing in the bulk of Mexican and Canadian products without duties. Because of the USMCA exemption, the effective tariff rate on US imports of Canadian goods was around 5%. …Trump signaled that he would be open to further talks with Carney. …Hours before raising Canada’s tariffs, Trump agreed to extend current tariffs on Mexico for 90 days.
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