Donald Trump confirmed Thursday that the U.S. will impose a 10% baseline tariff on imports from most countries starting Friday, while raising tariffs on Canada to 35% and adjusting rates for dozens of other nations. The move solidifies a sweeping global trade strategy aimed at reducing deficits and promoting U.S. manufacturing.
Goods under the USMCA remain exempt, but Trump cited Canadian inaction on stopping drug flows as the reason for the increased rate. A 90-day extension was granted to Mexico to negotiate a better deal.
Countries were grouped into tiers based on trade balances: 10% for surplus countries, around 15% for those with modest deficits or recent deals, and higher for others. Some African nations and Switzerland saw increases, while many countries had their April tariff rates lowered.
The announcement comes as a federal appeals court reviews whether Trump has the authority to unilaterally impose such tariffs under longstanding trade deficit conditions—an issue likely headed to the Supreme Court.
Markets reacted modestly Thursday night, but analysts warn that businesses and consumers are absorbing the highest trade tariffs in over a century, with further impacts yet to unfold.
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