Trump Hikes Tariffs, Canada and Allies Hit Hard

President Donald Trump has imposed sweeping new US tariffs on imports from over 60 countries, raising duties on Canadian goods not covered by the US-Mexico-Canada Agreement to 35%. The White House cited Canada’s alleged inadequate efforts to curb illicit drug flows and its recognition of a Palestinian state as reasons for the tariff hike. The average US tariff rate is now about 15%, the highest since the 1930s, with some countries like Syria facing rates up to 41%. Mexico received a 90-day reprieve, while South Korea secured a lower tariff through an investment deal. Canadian Prime Minister Mark Carney expressed disappointment and pledged to diversify exports, as industries like lumber and automobiles are expected to be hit hardest. The tariffs have unsettled global financial markets and further US tariffs on sectors such as pharmaceuticals and semiconductors are anticipated.