Fri, 01 Aug 2025

Fri, 01 Aug 2025 Carney 'disappointed' as Trump increases tariffs on Canada to 35%

The president also announced sweeping tariffs on dozens of countries, as he continued his drive to remake how global trade operates.
US President Donald Trump has imposed new tariffs on several countries, increasing tensions in global trade. The tariffs, which range from 10% to 50%, apply to goods imported into the US and are part of an ongoing effort by Trump to rebalance trade flows and reduce the country's trade deficit. Canadian Prime Minister Mark Carney expressed disappointment at the increased tariff rate on Canadian exports to the US, which was raised from 25% to 35%. However, most Canadian goods will be exempt from the tariffs due to a free trade agreement with the US. Trump cited Canada's failure to cooperate in curbing fentanyl and other drug imports into the US as a reason for the higher tariff rate. The Canadian government has denied this claim, saying it is making efforts to crack down on drug gangs. The new tariffs will affect dozens of countries, including Asian nations such as India, Taiwan, and South Korea, which have already reached a deal with the US. Other countries affected include Vanuatu, Papua New Guinea, Laos, and Syria. Economists and financial analysts have warned that the tariffs will raise prices for businesses and consumers in the US and weigh on the economy. The Trump administration has dismissed these warnings, saying it is "proving the so-called economic experts wrong at every turn". The escalation of the trade war has been a long time coming, with Trump unveiling sweeping "reciprocal" tariffs in April. Since then, more than 200 countries have reached out to the White House to negotiate, but some talks remain unresolved. Key aspects of agreements with key trading partners such as India and Japan remain unresolved, while others, like Switzerland, were only informed of their new tariff rate at the last minute.
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