U.S. President Donald Trump on Thursday announced sweeping new tariffs on nearly 70 countries, including a 35 percent duty on Canadian imports, as part of a broader effort to reshape global trade in favor of American industries.
While the tariffs were initially expected to take effect immediately, the White House said most of the measures will be delayed by one week, offering a brief window for negotiations. Canada, however, will see the new 35 percent tariff come into force on Friday, a sharp escalation from the previous 25 percent rate.
The executive order, which replaces an earlier 10 percent tariff imposed in April, raises duties as high as 41 percent depending on the trading partner. It also imposes a 40 percent penalty on goods rerouted through third countries to evade U.S. tariffs.
Trump justified the increase by citing “reciprocal” action against unfair trade practices, while also warning of consequences for Canada following Prime Minister Mark Carney’s announcement supporting Palestinian statehood at the upcoming UN General Assembly.
“Wow! Canada has just announced that it is backing statehood for Palestine,” Trump posted on Truth Social prior to the announcement.
Mexico received a temporary reprieve, with a 90-day delay on a planned hike from 25 percent to 30 percent following talks between Trump and Mexican President Claudia Sheinbaum.
The announcement adds further complexity to U.S. trade relations. While Canada and Mexico are technically covered under the U.S.-Mexico-Canada Agreement (USMCA), exemptions do not apply to all sectors.
International trade analysts warned that the move could unravel decades-old frameworks. “The executive order and related agreements tear up the trade rule book that has governed international trade since World War II,” said Wendy Cutler, vice president at the Asia Society Policy Institute.
Countries reaching deals to avoid steeper duties include Japan, the EU, Indonesia, South Korea, and the UK. Cambodia and Thailand were granted lower-than-expected tariffs of 19 percent.
Notably absent from Thursday’s announcement was China, which faces a separate tariff decision by August 12 amid ongoing negotiations aimed at maintaining a temporary truce.
Despite legal challenges and inflationary risks, Trump defended the measures as essential. “The U.S. economy has no chance of survival or success without tariffs,” he declared.
