‘They have to pay a fair rate’: Trump increased the tariff from 25% to 35% on Canada; here’s why

US President Donald Trump on Thursday signed an executive order, which raised tariffs from 25% to 35% in the United States on Canadian imports.According to the White House factories, the new import rate is effective on August 7. The tariff applies to all the items not covered by the US-Maxico-Canada Trade Agreement. To avoid these tariffs, a 40% transmission levy will apply to the recurrected items through another country.This action follows the tariff warnings of the Trump administration and the months of growing trade disputes, who have provoked Canadian resentment.Shortly before the time limit of 1 August, Trump determined to establish a trade agreement with his administration for many countries.The White House stated on Thursday evening that Trump extended the Canadian tariff due to the country’s inaction, “Public health crisis due to fennel and illegal drugs flowing along the northern border in the United States”.Even in Pressor, President Trump claimed that Canada charges high tariffs on farmers and increase in tariffs is a fair rate. “Well, they have to pay a fair rate. It is all very simple. They are charging too much for our farmers, some more than 200% and they have been treating our farmers very badly for years and they have become spoiled and we want to have fairness for our country. Want a lot of things from our country. And we did this for years. We originally protect them with our army. They spend very little money on their army, as you know, not the acceptable amount, “Trump said in briefing. In early Thursday, Trump posted on social media, stating that he could prevent a tariff agreement with Canada as vengeance for Palestine’s state recognition.“Wow! Canada has just announced that it is supporting the state for Palestine,” Trump wrote on his true social stage. “This will make it very difficult for us to deal with them. Oh ‘Canada !!!”Ottawa officials have continuously stated that the minimum fennel entering the US comes from Canada, although they have strengthened border measures.US Commerce Secretary Howard Lutnik indicated that Trump could reconsider the tariff if Canadian Prime Minister Mark Carney “starts turning on the attraction and if he takes his vengeance”.On Wednesday, Carney said that as long as trade discussions were productive, they may not end by the deadline. He said that it was impossible to abolish all American tariffs.Carney must align its response with ten provinces, where opinion between strict and generous approaches is different.William Hagins, assistant professor at McMaster University in Economics, told The Guardian that the Canadian economy was unsafe due to its large neighbor.“Canada has tried to forcefully interact with the situation of not getting acquainted for every demand, but by the same token, it is also felt that it is not in the strongest position to do so … we have to navigate carefully,” Hugins said.About 75% of Canadian exports go to America.Since March, Trump applied various Canadian tariffs: 25%on all goods except potash and energy products, 10%on energy resources including potash, 50%on steel and aluminum imports and 25%on motor vehicle products.In June, Carney informed reporters that Canada would possibly implement additional counter-Levi on American steel and aluminum exports if no trade agreement was signed by 1 August.