Trump slaps 35% tariff on Canadian goods amid escalating political tensions

President Donald Trump on Thursday announced sweeping new tariffs on nearly 70 countries, including a sharp 35 per cent levy on Canadian imports, marking a major escalation in his bid to reshape global trade in favour of the United States.

The White House said the tariffs,  which Trump claims are necessary to protect American industry and jobs, will go into effect next week for most countries, offering a short window for last-minute negotiations. However, the hike on Canadian goods will take effect immediately on Friday.

This latest move is part of a broader push by the 79-year-old Republican to implement “reciprocal” tariffs, replacing the current 10 per cent duty first imposed in April with steeper rates that now reach up to 41 per cent for certain trading partners.

Goods rerouted through third countries to evade tariffs will attract an additional 40 per cent penalty, according to the executive order, AFP reported.

Trump’s decision to raise duties on Canada follows political fallout over Prime Minister Mark Carney’s announcement that Ottawa would support Palestinian statehood at the United Nations General Assembly in September — a move that clearly angered the former president.

“Wow! Canada has just announced that it is backing statehood for Palestine,” Trump wrote on his Truth Social platform. “That will make it very hard for us to make a Trade Deal with them.”

In contrast, Mexico received a temporary reprieve, with Trump delaying for 90 days a planned tariff increase from 25 to 30 per cent following direct talks with Mexican President Claudia Sheinbaum. Canada and Mexico are covered under a separate trade framework, although exemptions under the North American trade pact still apply in certain cases.

While the tariffs are designed to boost domestic manufacturing and reduce reliance on imports, they have sparked widespread concern among economists, businesses, and US allies, who warn of inflationary pressures and long-term economic consequences.

“This executive order tears up the post-WWII trade rule book,” said Wendy Cutler, vice president at the Asia Society Policy Institute. “Whether our partners can preserve it without the United States is an open question.”

The administration’s aggressive use of tariffs has also triggered legal battles. On Thursday, the US Court of Appeals heard arguments challenging Trump’s invocation of emergency economic powers, after a lower court previously ruled that he had exceeded his authority.

Despite the backlash, Trump doubled down on his protectionist stance, declaring that the US economy had “no chance of survival or success” without tariffs.

Meanwhile, a flurry of backdoor negotiations appears to have spared several nations from the harshest penalties. Countries such as Vietnam, Japan, Indonesia, the Philippines, South Korea, and members of the European Union successfully reached deals to avoid the full brunt of the tariff hikes.

Among the new tariff rates announced:

Switzerland will now face a 39 per cent duty,

Taiwan’s tariff was revised downward from 32 to 20 per cent, with President Lai Ching-te pledging to pursue even lower rates,

Cambodia and Thailand were relieved to see their tariffs set at 19 per cent, a notable reduction from previously threatened levels of 49 and 36 per cent respectively.

The United Kingdom, although not initially targeted, has also secured a trade pact with Washington to avoid higher “reciprocal” tariffs.

Noticeably absent from Thursday’s rollout was China. Washington and Beijing have agreed to maintain reduced tariff levels for now, with an August 12 deadline looming. If no further progress is made, duties could spike again — reigniting a trade war that once saw tariffs reach triple-digit percentages.

As Trump gears up for a return to the campaign trail, tariffs are once again emerging as a key feature of his economic policy — a gamble that may deliver political dividends at home but risks further straining ties abroad.