Top Story: Trump Hikes Tariffs on Canada to 35% in Surprise Executive Order
August 1, 2025 — Washington, D.C.
In a dramatic escalation of trade tensions, former U.S. President and Republican presidential nominee Donald Trump has signed a new executive order raising tariffs on Canadian goods from 25% to 35%. The order, which takes effect at midnight, marks one of Trump’s most aggressive trade moves in recent years and is already sending shockwaves through North American markets.
The surprise decision was announced Friday afternoon during a campaign rally in Ohio, where Trump framed the move as a “necessary correction” to what he called Canada’s “long-standing unfair trade practices.”
“They’ve taken advantage of us for too long,” Trump said to a cheering crowd. “Starting tonight, we’re putting America first — again.”
The 10-point tariff increase will apply across a broad range of Canadian exports, including steel, aluminum, lumber, and agricultural products — key pillars of Canada’s economy. The executive order signals a return to Trump’s hardline trade policies reminiscent of his first term, when tariff battles with allies and rivals alike disrupted global markets and drew criticism from economists.
Canadian officials reacted swiftly. In a statement late Friday, Canada’s Ministry of Foreign Affairs called the tariff hike “unwarranted, economically damaging, and a violation of international trade agreements.” The Canadian government said it is reviewing retaliatory measures and will “defend Canadian industries with the full weight of our economic and diplomatic tools.”
Markets responded with immediate concern. The Canadian dollar fell against the U.S. dollar, and shares in key export-dependent sectors tumbled in after-hours trading. Analysts warn that the tariff hike could trigger a fresh trade war, strain U.S.-Canada relations, and have ripple effects across supply chains in both countries.
Trump’s executive order comes just three months before the U.S. presidential election, where trade and economic nationalism have become central themes in his campaign. Critics argue that the move is politically motivated and risks destabilizing a crucial economic partnership.
As of now, the White House has not released detailed justifications for the tariff increase. Meanwhile, Canadian businesses, trade unions, and political leaders are bracing for impact — and for a potentially turbulent chapter in U.S.-Canada relations.
