President Donald Trump on Thursday unveiled sweeping new tariff increases targeting nearly 70 countries, with Canada receiving one of the steepest hikes — a 35 per cent duty on its exports to the United States — in what appears to be retaliation for Prime Minister Mark Carney’s decision to support Palestinian statehood at the United Nations.
The move signals a significant escalation in Trump’s trade agenda, which he says is aimed at protecting American industry and forcing foreign governments to negotiate fairer terms. The White House said the tariffs, originally scheduled to take effect Friday, will now be delayed by one week for most countries. Canada, however, will see the new rate kick in immediately.
“This is about making trade fair again,” Trump declared. “We will no longer allow countries to take advantage of the United States.”
The tariff increases come just months after Trump reintroduced “reciprocal” tariffs in April, setting a baseline 10 per cent duty on most foreign imports. Thursday’s executive order raises those duties to varying levels, some as high as 41 per cent. It also includes a punitive 40 per cent surcharge on goods that are transshipped through third countries to avoid US tariffs.
Trump’s decision to single out Canada follows remarks by Prime Minister Carney signalling that his government would formally support Palestinian statehood during the upcoming UN General Assembly meeting in September — a move that triggered immediate backlash from the former US president.
“Wow! Canada has just announced that it is backing statehood for Palestine,” Trump posted on his social media platform, Truth Social. “That will make it very hard for us to make a Trade Deal with them.”
Meanwhile, Mexico was granted a temporary 90-day reprieve from higher tariffs after President Claudia Sheinbaum held direct talks with Trump. The proposed increase from 25 to 30 per cent has been paused, but could still go ahead if negotiations stall.
Although Canada and Mexico are party to the United States-Mexico-Canada Agreement (USMCA), Trump’s latest executive order creates a parallel tariff regime that could supersede existing trade pacts in key sectors. Some exemptions under USMCA will still apply, according to the White House.
The sudden spike in tariffs has drawn criticism from economists and trade experts, who warn that the protectionist policy could drive up prices for American consumers and further isolate the US in global trade negotiations.
“These tariffs represent a dramatic break from the postwar international trade consensus,” said Wendy Cutler, a former US trade negotiator and vice president at the Asia Society Policy Institute. “The real question now is whether America’s trading partners can maintain a functioning rules-based system without US leadership.”
Thursday’s announcement also came as Trump faces ongoing legal challenges to his use of emergency economic powers. A US appeals court is currently reviewing whether the administration overstepped its authority in imposing blanket tariffs on multiple countries.
While Trump boasts of increased customs revenue under the tariff regime, analysts have warned that the costs are largely borne by American businesses and consumers. There are also concerns the new wave of tariffs could contribute to inflationary pressures in the US economy.
Some countries managed to avoid the harshest penalties through last-minute deals with Washington. Among them:
Vietnam, Japan, South Korea, Indonesia, the Philippines, and the European Union secured revised rates or exemptions.
Switzerland will now face a 39 per cent tariff, while
Taiwan’s rate has been lowered to 20 per cent from the initially planned 32 per cent, with President Lai Ching-te pledging to continue negotiations.
In Southeast Asia, Cambodia and Thailand were relieved to see their rates reduced to 19 per cent, significantly lower than the earlier threats of 49 per cent and 36 per cent respectively.
The United Kingdom, though not initially targeted, also secured a bilateral pact with the US to shield its exports from higher duties.
Notably, China was left out of Thursday’s order. Talks between Washington and Beijing have led to a temporary truce, but unless an agreement is reached, tariffs on Chinese goods could be reinstated at higher levels by August 12.
As Trump prepares for a potential return to the White House, the latest tariffs reaffirm his commitment to economic nationalism — a message aimed at voters in key manufacturing states, but one that may strain America's global partnerships even further.
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