Trump Escalates Trade War with Canada, Hikes Tariffs to 35%

The WHITE House has sharply escalated trade tensions with Canada, imposing new 35% tariffs late Thursday. This marks a significant increase from the 25% emergency tariffs first levied in March. Canadian officials had previously retaliated with their own duties, creating a standoff between the longtime allies.

Washington justifies the MOVE by accusing Canada of failing to curb fentanyl exports, which it claims have become a substantial part of the Canadian economy. The administration dismissed Ottawa's retaliatory measures as hostile rather than constructive responses to the opioid crisis.

Notably, goods traded under the USMCA remain exempt following intense lobbying by U.S. automakers and manufacturers. This temporary reprieve maintains critical supply chains but does little to ease broader economic tensions between the neighboring nations.