Here’s a detailed article based on the JETRO news about former US President Trump’s potential tariff announcement on Canada, written in an easy-to-understand manner:
Trump Administration Hints at Steep Tariffs on Canadian Goods, Sparking Trade Tensions
Tokyo, Japan – July 11, 2025 – In a significant development that could reshape North American trade, reports indicate that former US President Donald Trump has informed Canada of his intention to impose a substantial 35% additional tariff on a wide range of Canadian imports. This announcement, according to the Japan External Trade Organization (JETRO), signals a potential return to aggressive trade policies that characterized his previous term.
While the exact details of which Canadian products would be targeted are still emerging, the sheer scale of the proposed tariff – a considerable jump from previous levies – has sent ripples of concern through both the Canadian and international business communities.
What Does a 35% Tariff Mean?
A tariff is essentially a tax imposed on imported goods. A 35% additional tariff means that the cost of importing a product from Canada into the United States would increase by 35% of its value. For example, if a Canadian-made product costs $100, a 35% tariff would add an extra $35 to its price for American consumers or businesses importing it.
This substantial increase can have several significant impacts:
- Higher Prices for Consumers: American consumers would likely face higher prices for goods that are heavily reliant on Canadian manufacturing or raw materials. This could include everything from vehicles and auto parts to lumber, dairy products, and even certain types of food.
- Reduced Competitiveness for Canadian Businesses: Canadian companies would find it more difficult and expensive to sell their products in the US market, potentially leading to decreased sales, reduced production, and job losses.
- Disruption to Supply Chains: Many industries in both the US and Canada have deeply integrated supply chains. These tariffs could disrupt these established flows, forcing businesses to seek alternative suppliers, which can be costly and time-consuming.
- Retaliatory Measures: Historically, when one country imposes significant tariffs, the affected country often retaliates with its own tariffs on imports from the imposing country. This can lead to escalating trade wars, harming economies on both sides.
Why Canada?
While the specific rationale behind the 35% tariff announcement hasn’t been fully elaborated in the initial reports, it’s important to recall the context of previous US trade actions under the Trump administration. During his presidency, the US frequently cited concerns about trade imbalances and what it perceived as unfair trade practices by its partners, including Canada, particularly in sectors like agriculture and automobiles.
The Canada-United States-Mexico Agreement (CUSMA), also known as the USMCA, replaced NAFTA in 2020. While intended to modernize North American trade, it still contained provisions that could be subject to dispute and the imposition of tariffs under certain circumstances. It’s possible that any recent trade disagreements or specific industry grievances could have prompted this latest announcement.
Potential Ramifications Beyond North America
The impact of such a significant tariff on Canada could extend beyond the immediate bilateral relationship.
- Global Trade Uncertainty: A return to aggressive tariff policies by a major global economy like the US can increase overall global trade uncertainty, making businesses hesitant to invest and expand internationally.
- Shifting Trade Patterns: If Canadian goods become significantly more expensive in the US, other countries might seek to fill that gap, potentially shifting global trade patterns and benefiting countries not directly involved in this dispute.
- Impact on Japan: As a major trading nation, Japan’s businesses could be indirectly affected by disruptions in North American supply chains or by a general slowdown in global economic activity due to increased trade friction. Japanese companies with manufacturing operations in Canada or the US, or those that rely on components from either country, would need to monitor the situation closely.
What Happens Next?
The announcement is a notification, and the actual implementation of these tariffs would likely involve further steps, including the designation of specific goods and a potential period for public comment or negotiation. However, the clear message is that the US, under a potential Trump administration, is prepared to use tariffs as a significant tool in its economic diplomacy.
Canadian officials are expected to respond promptly to this notification, likely through diplomatic channels, and will undoubtedly be assessing the economic implications and considering their options.
This development underscores the ever-evolving landscape of international trade and the importance of staying informed about policy shifts that can have far-reaching consequences for businesses worldwide.
The AI has delivered the news.
The following question was used to generate the response from Google Gemini:
At 2025-07-11 06:00, ‘トランプ米大統領、カナダに35％の追加関税を通告’ was published according to 日本貿易振興機構. Please write a detailed article with related information in an easy-to-understand manner. Please answer in English.