By Michael Vadon - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=54216023
Alberta oil and USMCA goods spared as Canada braces for impact; automakers warn of damage from earlier copper hike
U.S. President Donald Trump is reigniting trade tensions with Canada, announcing sweeping new tariffs of 35 per cent on most Canadian goods starting August 1. The move comes despite Ottawa’s decision to scrap its proposed digital services tax, a measure initially targeted by the White House.
Alberta’s oil industry avoids further pressure, with the current 10 per cent tariff on crude remaining unchanged. Goods protected under the Canada-United States-Mexico Agreement (CUSMA) will also be exempt from the new tariffs.
The White House claims the measures are necessary to address long-standing trade imbalances and to curb drug trafficking, although similar assertions in the past have been disputed by Canadian officials. Trump warned that the tariff rates could rise even further if Canada retaliates.
The announcement follows a separate U.S. move to impose a 50 per cent tariff on copper, a key material for automakers. Industry leaders on both sides of the border say that hike could cripple North America’s auto sector. This marks the third tariff escalation against Canada since January.
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