Trump imposes 35% tariff on Canada, considers tariffs for other partners

Trump Slaps 35% Tariff on Canadian Imports, Signals Global Trade Shake Up
In a move that has sent shockwaves through international trade corridors, former U.S. President Donald Trump has announced a sweeping 35% tariff on all Canadian imports, effective August 1, 2025. The decision has immediately sparked diplomatic tensions, market jitters, and fears of a renewed global trade war. The announcement also comes with a warning more countries may soon be hit with similar tariffs, as Trump’s policy agenda pivots once again toward economic nationalism.

A Sudden Strike Against a Long Time Ally
The tariff on Canada is Trump’s most aggressive trade move since leaving office and returning to the 2024 presidential race with a campaign that promised “economic sovereignty.” While speaking at a rally in Ohio, Trump defended the decision by accusing Canada of “taking advantage of American farmers, steelworkers, and manufacturers for decades.”

He specifically cited Canada’s long standing dairy protections, alleged currency manipulation, and what he called “inaction on cross border drug enforcement,” particularly in relation to fentanyl. “Enough is enough,” he said. “America deserves fair trade, not fake friendship.”

Canadian Prime Minister Mark Carney responded swiftly, calling the tariff “unjustified, harmful, and diplomatically reckless.” He vowed to explore all retaliatory and legal avenues to defend Canada’s economic interests, warning that “Canada will not be bullied.”

Economic Impact North American Trade in Turmoil
The tariff is expected to affect over $420 billion in annual bilateral trade between the U.S. and Canada, two of the world’s most deeply integrated economies. Key Canadian exports to the U.S. including lumber, aluminum, dairy, automotive parts, and agricultural goods now face steep price hikes that could disrupt production chains and drive up consumer costs.

Auto manufacturers on both sides of the border have expressed alarm. Many vehicles produced in North America rely on Canadian made components, and the new tariffs could force price increases or production slowdowns. Likewise, U.S. retailers and construction companies anticipate sharp rises in timber and aluminum prices.

Wall Street reacted with unease stock indices dipped across the board, with industrials and manufacturing shares leading the losses. The Canadian dollar weakened, and safe haven assets like gold saw a brief rally.

Global Consequences Loom
Trump’s move isn’t stopping at Canada. Sources close to the campaign confirmed that letters have been sent to more than 20 U.S. trading partners, warning of potential tariffs between 15% and 25% unless trade deals are “reviewed and reset.” Countries reportedly on the radar include Germany, Japan, India, Mexico, and Vietnam.

Such a move could unravel years of trade diplomacy. Critics argue that applying steep tariffs across such a wide spectrum would not only harm American consumers but also undermine the credibility of existing trade agreements like USMCA, WTO rules, and numerous bilateral treaties.

Economists are particularly concerned about inflationary consequences. “A blanket tariff strategy at this stage of global recovery could stoke supply shortages and consumer price surges,” said Dr. Angela Lin, an international trade economist at Columbia University. “We’ve already seen what pandemic era disruptions can do. This could compound the problem.”

Political Calculus A Core Campaign Strategy
For Trump, the tariff decision is more than just economic policy it’s political strategy. It revives one of his most potent 2016 2020 narratives that global trade has hollowed out American industry. With his 2024 comeback campaign heavily focused on “America First 2.0”, Trump is leveraging trade as both a policy tool and a rallying cry.

His campaign team believes the hardline approach resonates with voters in the Midwest and Rust Belt, where factory jobs and manufacturing pride remain politically powerful. “The 35% tariff is as much about Youngstown as it is about Ottawa,” a campaign aide reportedly told political analysts.

However, critics argue that such protectionism could backfire domestically, hurting U.S. manufacturers who rely on imported raw materials and damaging diplomatic ties that serve broader strategic interests, including defense and climate cooperation.

Canada’s Response Calm but Firm
In contrast to Trump’s bombastic announcement, Canada’s response has been measured but clear. Prime Minister Carney emphasized that Canada “has always honored its trade obligations,” noting that existing dispute resolution mechanisms under USMCA would be explored. Canadian provinces, especially those with export heavy economies like Alberta, Ontario, and British Columbia, are already preparing impact assessments and contingency plans.

Canada is also consulting with allies, including the European Union and Mexico, on coordinated responses if the tariff trend expands. Some sources hint that retaliatory tariffs on U.S. agricultural goods, tech imports, and consumer products are already being drafted.

Industry and Public Reactions Divided and Anxious
In both countries, industries directly impacted by the tariffs are expressing deep concern. U.S. farm groups fear Canadian retaliation could close off a critical export market. Canadian exporters worry that contracts with U.S. clients could be canceled or renegotiated under pressure.

Public sentiment is mixed. While some U.S. workers view the tariffs as a needed correction, many consumers are alarmed by the potential for price hikes on groceries, appliances, and vehicles. In Canada, the tone is more defensive, with calls to strengthen domestic production and diversify export markets.

The Road Ahead A Trade War Reloaded?
With less than a month until the tariffs take effect, intense diplomatic engagement is expected. Canada is preparing to file formal complaints under USMCA and WTO, and back channel talks are already underway between diplomats in Washington and Ottawa.

If Trump returns to the presidency in 2025, these tariffs could become a permanent fixture of U.S. trade policy. Even without official office, his influence over policy and the Republican party is reshaping how America views globalization and alliances.

At stake is not just the cost of imported goods but the future of international trade norms. Trump’s actions mark a turning point either toward a more protectionist global era or a recalibration that reignites old alliances in new forms.