U.S. President Donald Trump has unveiled a sweeping set of new tariffs affecting nearly 70 countries, including a sharp 35 per cent duty on imports from Canada, as part of an aggressive push to realign global trade in favor of American industries.
Announced Thursday via executive order, the tariffs mark a dramatic escalation in Trump’s protectionist agenda, with rates varying by country and reaching as high as 41 per cent. Canadian goods, previously hit with a 25 per cent tariff, will now face 35 per cent duties beginning Friday.
“These tariffs are a demonstration of raw economic power,” Trump said, adding that the measures aim to strengthen U.S. exporters and domestic manufacturing.
The White House said most of the new tariffs will take effect in a week, offering a brief window for continued negotiations. Canada and Mexico, key trading partners, will remain under a separate regime due to the North American trade agreement, though exemptions will be limited.
The Canadian tariff hike follows Prime Minister Mark Carney’s announcement to back Palestinian statehood at the upcoming UN General Assembly — a move that Trump condemned on social media, warning of trade consequences.
“Wow! Canada has just announced that it is backing statehood for Palestine,” Trump wrote on Truth Social. “That will make it very hard for us to make a Trade Deal with them.”
Tariffs on “transshipped” goods — items routed through third countries to avoid duties — will also attract an additional 40 per cent tariff under the order.
While Trump’s supporters have hailed the tariff strategy as a lever for fairer trade, critics and economists have raised alarms about potential inflationary effects. Legal challenges are already underway, with the U.S. Court of Appeals reviewing arguments that Trump overstepped his authority.
In a bid to soften the blow, the White House confirmed that countries such as Vietnam, Japan, Indonesia, and the EU had negotiated more favorable terms to avoid steeper levies. Notably, China was excluded from the immediate rollout but faces an August 12 deadline for renewed tariffs.
“This executive order tears up the trade rule book that has governed international trade since World War II,” said Wendy Cutler, Vice President of the Asia Society Policy Institute. “Whether our partners can preserve it without the United States is an open question.”
Despite economic uncertainty, Trump doubled down on his stance, saying the U.S. economy had “no chance of survival or success” without tariffs.
