JAKARTA - The United States announced it would impose 35 percent tariffs on Canada, up from the original 25 percent, after the country's leader previously said it would be difficult to reach a deal following Ottawa's planned recognition of the State of Palestine.
The White House announced that President Donald Trump signed an executive order on Thursday raising tariffs on Canadian goods from 25 percent to 35 percent.
The new tariffs will take effect on August 1.
"In response to Canada's continued indifference and retaliatory actions, President Trump feels it is necessary to increase Canada's tariffs from 25 percent to 35 percent in order to effectively address the current emergency," the White House said, as reported by Reuters on August 1.
Previously, President Trump intensified the trade war with Canada a day before the August 1 deadline, saying it would be "very difficult" to reach a deal with Canada following its support for Palestine.
"Wow! Canada just announced its support for Palestinian statehood. That's going to make it very difficult for us to reach a Trade Deal with them," President Trump said on Truth Social.
Canadian Prime Minister Mark Carney previously said tariff negotiations with Washington had been constructive, but they were unlikely to conclude before the deadline.
Negotiations between the two countries were in an intense phase, he added, but a deal that would eliminate all US tariffs appeared unlikely.
Canada is the US's second-largest trading partner after Mexico and the largest buyer of US exports. Canada bought US$349.4 billion worth of US goods last year and exported US$412.7 billion to the United States, according to US Census Bureau data.
Canada is also a major supplier of steel and aluminum to the United States and faces tariffs on both metals and vehicle exports.
Last month, the Carney administration scrapped a proposed digital services tax targeting US technology companies after Trump abruptly called off trade talks, calling the tax a "blatant attack."
This week, Carney announced on Wednesday plans to recognize the State of Palestine, following in the footsteps of France and the UK, at the United Nations in September.
In announcing the decision, Prime Minister Carney addressed the realities on the ground, including the famine in Gaza.
"Canada condemns the fact that the Israeli government has allowed this catastrophe to unfold in Gaza," he said.
Meanwhile, Israel and the United States, Israel's closest allies, both rejected Prime Minister Carney's announcement.
Prime Minister Carney's office did not immediately respond to a request for comment on President Trump's post.
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