The White House has announced an update to its tariff plan, just hours before President Donald Trump’s deadline for new trade agreements. The new tariffs, initially set to begin on August 1, will now take effect on August 7. This delay is intended to give Customs and Border Patrol officials time to prepare for the new rates that will apply to numerous countries.
Under the new plan, a 10% universal tariff will be the minimum for trade with the United States. However, this rate will only apply to countries that have a trade deficit with the U.S., meaning they import more from America than they export. For countries with a trade surplus, tariffs will start at 15%. Additionally, countries that have recently made trade agreements with the U.S. will face varying tariff rates based on those agreements.
Some nations will experience even steeper tariffs, with rates ranging from 19% to 41%. The White House stated that these tariffs are part of Trump’s strategy to prioritize American interests and address long-standing trade deficits that they argue threaten the economy and national security.
A senior administration official commented that Trump’s actions are reshaping global trade, achieving results that the World Trade Organization and other multilateral systems have struggled to accomplish over the past 25 years.
In a significant move, the administration also announced an increase in tariffs on Canada, raising the rate from 25% to 35%. This change is set to take effect on August 1, 2025. The White House justified this increase by claiming that Canada has not done enough to combat the flow of illicit drugs, including fentanyl, into the United States.
In response, Ontario Premier Doug Ford criticized the tariff hike, urging the Canadian government to stand firm against the changes. He emphasized that Canada deserves a fair deal and that now is not the time to back down.
As the new tariffs approach, both the U.S. and Canada brace for the potential economic impacts of this escalating trade tension.
