Trump’s Trade Tariffs and Peace Process

• US President Donald Trump is considering imposing a 15% or 20% blanket tariff on countries that have not yet received specific notifications, effective August 1.

• Trump has started issuing letters to leaders from over 20 countries, outlining duties ranging from 20% to 50%.

• The tariffs are part of Trump’s “Liberation Day” trade announcement, which was to take effect on July 9, but are now delayed to August 1.

• The tariffs are part of a sweeping package of import duties that was to take effect on July 9, but are now delayed to August 1.

• Canada has been threatened with a 35% tariff starting August 1, upending negotiations between the neighbours and close allies.

• Canadian energy resources are expected to face a lower levy, although final decisions on the matter have not been made.

• Both Canada and Mexico are trying to find ways to satisfy Trump so that the USMCA free trade deal can be put back on track.

• The USMCA replaced the previous NAFTA accord in July 2020, after Trump successfully pushed for a renegotiation during his first term in office.

• The USMCA replaced the previous NAFTA accord in July 2020, but the process has been disrupted by Trump’s trade wars.