President Donald Trump has announced a sharp increase in tariffs on select aluminum products from Canada — jumping from 25% to 35%. The move follows the collapse of trade negotiations between the U.S. and Canada, marking a serious escalation between the two long-standing allies.

The White House confirmed the decision Thursday evening, accusing Canada of failing to stop the flow of fentanyl and other illegal drugs into the U.S. “Despite our alliance, Canada has allowed the expansion of exports of deadly substances and responded hostilely to previous U.S. tariffs,” the statement read.

🔹 USMCA Still Protects Key Sectors

Thanks to an exemption under the USMCA (United States–Mexico–Canada Agreement), many critical sectors — including automotive, engineering, and electronics — are currently shielded from the new tariffs. American automakers heavily lobbied for this, warning of potential supply chain disruptions.

However, key Canadian exports such as aluminum, steel, lumber, and agricultural goods are expected to be hit hard. According to the Bank of Canada, the effective tariff burden on Canadian goods entering the U.S. will rise significantly.

In 2024, trade between the two countries nearly reached $1 trillion. The U.S. imported $475 billion worth of Canadian goods and exported $440 billion in return, primarily in automobiles, industrial machinery, and consumer goods.

🌐 Broader Tariff Crackdown Hits Other Countries

Canada isn’t alone. The White House has also imposed new tariffs on other countries with large trade surpluses with the U.S. The new baseline tariff starts at 15%:

🔹 India – 25%

🔹 Taiwan – 20%

🔹 Switzerland – 39%

🔹 South Africa – 30%

🔹 Thailand and Cambodia – 19% (despite last-minute deals)

Trump has maintained a global base tariff of 10% but indicated that stricter sanctions may be implemented if new trade agreements are not finalized soon.

📉 Markets Calm – For Now

Despite the diplomatic fallout, financial markets have remained relatively calm. During early Asian trading, the Canadian dollar and South African rand showed only minor fluctuations. The White House has not yet confirmed when the new tariffs will take effect.

#TRUMP , #Tariffs , #Canada , #TradeWars , #Geopolitics

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