Trump plans radical tax hikes on trade with Canada

US President Donald Trump claimed in statements made via social media that Canada has long enjoyed unilateral advantages in trade. Trump emphasized that the high import taxes Canada imposes on American agricultural products are causing serious harm to farmers in his country and stated that the current order is unsustainable.

“Canada will no longer be treated like a US state. They are in a position as one of the most difficult countries to establish relations with in trade and other areas,” Trump said, criticizing the approach of the Ottawa administration. Trump addressed US companies, informing them that they would not pay any customs duties if they moved their production activities within the country's borders.

At the same time, the US President pointed out that the economic relationship between the two countries is asymmetric, arguing that 95 percent of Canada's total trade takes place with the US, whereas the US is much less dependent on Canada. Trump included the remarks, "We don't need Canada, but they need us."

Trump also announced that the US would turn trade balances in its favor with new customs duties of 50 percent to be implemented starting from the beginning of 2027. The President stated that with this move, he aims to close the annual 60 billion dollar trade deficit and strengthen American producers.