President Donald Trump has launched a sweeping new round of tariffs on 69 countries, intensifying a global trade standoff and escalating tensions over fentanyl, national security and China.
Canada Hit With 35% Tariff Over Fentanyl Dispute
Just before a major trade deadline on Friday, Trump signed an executive order imposing new U.S. import duties ranging from 10% to 41% on dozens of trading partners, reported Reuters.
One of the most severe penalties was aimed at Canada, with tariffs on many goods rising from 25% to 35% over what Trump described as Ottawa's "failure to cooperate" on combating fentanyl flows into the U.S.
Brazil, India, Taiwan, Switzerland Among Nations Facing New Duties
Goods from Brazil will face a 50% tariff, while India, Taiwan and Switzerland are among others hit with new rates of 20% to 39%. A baseline 10% tariff will apply to all nations not listed in the annex.
Negotiations with India broke down over agricultural access and Russian oil ties, with Trump threatening further penalties.
Some trading partners have failed to align "sufficiently with the United States on economic and national-security matters,” Trump said in the order.
See Also: Trump, Jamie Dimon Reportedly Meet After President's Fed Visit, Ending Years-Long Rift: What Changed?
Mexico Secures 90-Day Reprieve After Trump-Sheinbaum Call
Mexico, in contrast, secured a 90-day reprieve from the threatened 30% tariff after a phone call between Trump and President Claudia Sheinbaum Pardo. "We avoided the tariff increase announced for tomorrow," Sheinbaum posted on X.
South Korea Accepts Tariffs, China Still Has Time
Trump also announced a deal with South Korea, which accepted a 15% tariff on exports and pledged $350 billion in U.S. investments.
Meanwhile, China has until Aug. 12 to finalize a long-term tariff deal with the Trump administration, following earlier preliminary agreements made in May and June aimed at resolving the ongoing tariff standoff and preventing a halt in rare earth mineral exports.
Legal Doubts Mount Over Trump's Emergency Tariff Authority
Trump cited the 1977 International Emergency Economic Powers Act to justify declaring a national emergency tied to the expanding U.S. trade deficit, enabling him to implement “reciprocal” tariffs and address a separate fentanyl-related crisis.
However, in May, the Court of International Trade ruled that these measures exceeded his executive powers. During a hearing at the U.S. Court of Appeals for the Federal Circuit in Washington, judges expressed continued doubt about the legality of those actions.
Consumer Prices Already Climbing Amid Tariff Fallout
The tariffs could significantly raise the cost of imported goods for American consumers. Commerce Department data released on Thursday already shows price spikes for furniture, electronics and apparel.
The move also risks straining diplomatic ties with major allies and escalating ongoing legal and geopolitical battles over trade authority.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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