Trump’s new tariffs shake global trade, hits Canada, Mexico, 60 other nations

U.S. President Donald Trump on Thursday announced sweeping new tariffs on nearly 70 countries, including a heavy 35 per cent levy on Canadian goods, in a dramatic move aimed at reshaping global trade in favour of the American economy.

While the tariffs were initially expected to take effect immediately, the White House confirmed that most of them will now begin in a week, offering a window for potential negotiations.

Trump, who is pushing his protectionist economic agenda ahead of the 2024 elections, said the new tariffs will strengthen U.S. exporters and local manufacturers by limiting foreign imports.

However, economists have raised concerns that the decision could drive inflation and cause significant disruptions in the global economy.

The newly announced duties increase the current tariff levels, originally set at 10 per cent in April to as high as 41 per cent for some countries. In addition, any goods routed through third-party countries to bypass U.S. duties will attract an extra 40 per cent tariff.

Canada was hit hardest, with its existing 25 per cent tariff now raised to 35 per cent, effective Friday.

The move follows Canada’s announcement of its intention to support Palestinian statehood at the upcoming UN General Assembly in September.

“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.”

Mexico, on the other hand, was granted a 90-day delay before tariffs rise from 25 per cent to 30 per cent, following discussions between Trump and Mexican President Claudia Sheinbaum.

Though certain exemptions still apply under existing North American trade agreements, the new tariffs throw uncertainty over U.S. trade relations with allies like the European Union and Japan. Countries such as Vietnam, Indonesia, South Korea, the Philippines, and the EU were able to strike deals with Washington to avoid steeper levies.

Other changes include a 39 per cent tariff on goods from Switzerland, a reduction in Taiwan’s duty to 20 per cent from 32 per cent, and a revised 19 per cent tariff on Cambodia and Thailand, both down from higher initial threats.

Britain secured a trade pact despite not being listed among the countries affected by “reciprocal” tariffs, while China, conspicuously absent from Thursday’s action, faces an August 12 deadline when suspended duties could be reimposed.

Wendy Cutler of the Asia Society Policy Institute noted that the moves effectively tear up the long-standing global trade rulebook.

“Whether our partners can preserve it without the United States is an open question,” she said.

Trump has maintained that without tariffs, the U.S. economy has “no chance of survival or success,” even as the latest order faces legal scrutiny.

The U.S. Court of Appeals is currently hearing arguments over whether Trump exceeded his authority under emergency economic powers.

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While the former president has boasted of increased customs revenue, analysts warn the real economic effects, particularly on inflation and consumer prices, remain to be seen.