US President, Donald Trump, has announced a sweeping set of new tariffs affecting nearly 70 countries, escalating his push to overhaul global trade in favor of American interests.
Among the most notable moves is a sharp 35% tariff on goods imported from neighboring Canada.
The tariffs, formalized in a new executive order, were initially set to take effect immediately but will now begin in one week for most countries, according to a statement from the White House.
This delay is seen as a window for last-minute negotiations.
The administration says the move is meant to assert U.S. economic dominance, bolster domestic manufacturing, and protect American exporters.
Still, the aggressive shift has sparked concerns about inflation and broader economic consequences in the United States, which remains the world’s largest economy.
The new duties follow an earlier round of 10% tariffs imposed in April, which Trump called “reciprocal” in response to what he views as unfair trade practices.
The latest tariffs vary by country, with some reaching as high as 41%.
A further 40% duty will apply to any goods “transshipped” through third countries in an attempt to sidestep the U.S tariff wall, the executive order states.
Canada, which had been subject to a 25% tariff, now faces a 35% duty starting Friday.
Trump’s order singles out Canada’s “retaliation” to earlier U.S actions and accuses the country of failing to “cooperate in curbing the ongoing flood of fentanyl and other illicit drugs.”
The decision also follows Canadian Prime Minister Mark Carney’s announcement that his government plans to recognize a Palestinian state during the upcoming UN General Assembly session in September, a move Trump had warned could carry trade consequences.
In response, Carney said his administration was “disappointed” by the tariff hike and defended Canada’s efforts to combat fentanyl trafficking and bolster border security.
Trump offered more time to Mexico, another major trading partner, delaying a proposed tariff increase from 25% to 30% for 90 days following talks with President Claudia Sheinbaum.
Some exemptions remain in place under the North American trade pact, shielding various Canadian and Mexican goods from the new duties.
Despite recent bilateral agreements with Japan, the European Union, and other partners, the long-term effectiveness of Trump’s trade strategy remains uncertain.
“No doubt about it, the executive order and related agreements concluded over the past few months tears up the trade rule book that has governed international trade since World War II,” said Wendy Cutler, senior vice president of the Asia Society Policy Institute.
“Whether our partners can preserve it without the United States is an open question,” she added.
China, notably absent from the latest tariff action, responded to U.S. trade protectionism with strong words.
“The Chinese side’s opposition to tariffs has been consistent and clear,” said Foreign Ministry spokesman Guo Jiakun.
“There is no winner in a tariff war or trade war.”
The expanded tariffs come amid growing legal scrutiny. Trump’s reliance on emergency economic powers has drawn lawsuits, and a U.S. Court of Appeals is currently hearing arguments on whether the president overstepped his authority.
While Trump boasts of rising customs revenues, economists warn the broader impact could be more harmful than helpful, potentially fueling inflation across sectors.
Still, some countries have negotiated lower tariffs to avoid steeper penalties.
Vietnam, Japan, Indonesia, the Philippines, South Korea, and the EU were among those striking deals to avert harsher rates.
In the latest round of adjustments:
Switzerland now faces a 39% tariff.
Taiwan’s duty was reduced from 32% to 20%, though President Lai Ching-te pledged to lobby for further reductions.
Cambodia and Thailand saw their tariffs cut to 19% — down from initially proposed levels of 49% and 36%, respectively.
The UK, though not previously targeted by reciprocal tariffs, also reached a trade agreement with Washington.
China remains under a separate timeline, with new tariff decisions expected by August 12.
Though both countries had previously escalated tariffs to triple-digit levels, they have since agreed to temporary reductions while talks continue.
