Trump increases the fees on Canada to 35% with the obligation to be released (USMCA)

US President Donald Trump said the United States will impose 35% of customs on some imports from Canada, in an eschalatory move that attracts tension between the two countries and exacerbating the damage that has affected one of the largest bilateral trade relations in the world. This new average is an increase of the 25% previous fees that Trump imposed in the beginning of March under the Emergency Act. “Canada could not work together to combat the ongoing flow of Fentanel and other illegal drugs as it responded to the United States” because of the previous customs duties that Trump imposed. But the US administration has released from fees for goods traded under the trade agreement between the United States, Mexico and Canada (USMCA). US car businesses, the largest beneficiary, have forced US car businesses and other businesses with mutually affiliated supply chains in North America to obtain this exception, enabling importers in the United States to import most Mexican and Canadian products without imposing fees. Thanks to the exemption under the “USMCA” agreement, the average rate of actual customs duties on the United States’s imports of Canadian goods reached about 5%, according to the estimates published by the Central Bank of Canada on July 30. This rate is likely to rise slightly as economists in the Bank of Nova Scotia will extend that it would be between 6%and 7%.