Trade war recap: Canada could walk away from U.S. negotiations, advisor says

U.S. President Donald Trump has increased tariffs on Canadian imports to 35 per cent, up from 25 per cent, citing a lack of co-operation on illicit drugs. Prime Minister Mark Carney called the move disappointing, but said Canada will continue to develop trade both domestically and overseas in response.

• What tariffs are active in the U.S.-Canada trade war?

Here’s a recap of the day’s events:

5:40 p.m. EDT: Rubio, Canadian foreign minister discuss Middle East, Haiti

U.S. Secretary of State Marco Rubio on Friday spoke with Canadian Foreign Minister Anita Anand, the State Department said.

The two discussed Haiti and the Middle East, including “how Hamas continues to obstruct peace,” the department said.

(Reporting by Jasper Ward)

Reuters

4:51 p.m. EDT: Talks constructive before deadline: Hillman

Canada’s ambassador to the United States says a lot of progress has been made with her American counterparts on trade -- despite President Donald Trump’s decision to boost tariffs on Canada to 35 per cent today.

Kirsten Hillman, who also serves as Canada’s top negotiator with the U.S., says there were professional and constructive conversations with Trump’s team throughout the week.

But ultimately, Hillman says, the right deal for Canada wasn’t on the table.

While Trump’s latest tariffs appear staggering, Hillman says it’s important to remember that there is a carveout for goods compliant under the Canada-U.S.-Mexico Agreement on trade.

She says that keeps Canada in a better position than nearly any other country.

Kelly Geraldine Malone for The Canadian Press

2:48 p.m. EDT: It’s time for Canada ’look within,’ Mississauga mayor says

Mississauga Mayor Carolyn Parrish is throwing her support behind Premier Doug Ford’s call to retaliate against American tariffs on steel and aluminum, and urged the prime minister to keep working on bringing down interprovincial trade barriers.

“At 35 per cent, the waters are too rough to calm as far as I’m concerned. I agree with what Premier Ford is doing, and I hope Prime Minister Carney comes back punting,” Parrish told CP24.

The Mississauga mayor, echoing the sentiments she made in a post on social media Wednesday night, said the tariffs present an opportunity for Canada to “look within” and make the country self-sufficient.

“It’s time for us to refine what we do here,” she said. “I think we have to become more self-sufficient. So in the future, when another Trump takes over in the States—I’m sure this guy’s gone in three years—that we won’t be put through the same grind.”

Parrish encouraged Ottawa to retaliate, and at the same time, still leave the door open for some negotiation. She said while she supports the premier’s call, she does not agree with the figure Ford suggested.

“I don’t know if I’d go to 50 per cent tariffs, as he suggested. I think that’s upping the ante too much, and it just looks like we’re punching them right in the head,” Parrish said.

“So, I agree with his theories. I don’t agree with the 50 percent quite yet, unless things get much worse.”

She also shared that during her recent roundtable with big manufacturers, many of them expressed nervousness with the ongoing situation and wanted officials to act with caution.

Bryann Aguilar, CP24 journalist

2:25 p.m. EDT: Danielle Smith calls on feds to diversify economic markets

Alberta Premier Danielle Smith issued a statement on Friday morning responding to the increased tariffs announced by Trump on Canadian goods.

The president announced Thursday that tariffs on non-CUSMA compliant Canadian goods would be increased to 35 per cent.

“We are pleased to see that CUSMA compliant goods remain tariff-free, including the vast majority of goods Alberta sells to the U.S., such as all oil and gas and agricultural products,” Smith wrote.

“That said, it’s also disappointing to see tariffs on other Canadian goods increase to 35 per cent. These tariffs hurt both Canadian and American businesses and workers, and they weaken one of the most important trade and security alliances in the world.”

Karyn Mulcahy, CTVNewsEdmonton.ca journalist. Read the full story here.

2:00 p.m. EDT: Ministers Robertson, Freeland pressed on no deal

Friday afternoon on Parliament Hill, reporters pressed Housing Minister Gregor Robertson and Internal Trade Minister Chrystia Freeland on the state of talks with the U.S. now that Canada has failed to secure a deal to spare this country from 35 per cent tariffs.

“I’m confident the prime minister is getting the best deal that he can for Canada,” Robertson said, ahead of his testimony as part of a rare summer committee meeting.

“Certainly, the U.S. tariffs are going to impact us, with steel and aluminum being components of housing and infrastructure, the costs are going to be more difficult for the time being, until we can retool,” he said.

“I think we’ve got an opportunity here going forward, to shift to buy-Canada aggressively with housing and infrastructure. And that’s certainly what I’m going to focus on.”

Asked what indications Carney has offered cabinet about where talks stand with the U.S., Robertson wasn’t specific.

“I think as compared to most countries around the world, we’re on a better course, and I think we’ve got to stay that course,” he said.

On her way out of the same committee hearing, Freeland did not stop when asked whether Canada has to retaliate, or why a deal was unattainable by Aug. 1.

CTV News then caught up with Freeland on her way off the Hill, where she again did not stop and speak when pressed on if she thinks the federal government should retaliate, or if she’s spoken to the premiers since the trade war escalated overnight.

CTV Parliamentary Bureau’s Rachel Aiello and Rachel Hanes

1:51 p.m. EDT: Canada trade team could quit D.C. talks: Carney adviser

The Canadian team working on a trade deal with the United States could walk away from talks in the wake of a U.S. decision to impose a 35% tariff on some goods from Canada, an adviser to Prime Minister Mark Carney said on Friday.

Flavio Volpe, a member of Carney’s hand-picked Council on Canada-U.S. Relations, told CBC News that the negotiators would stay in Washington for the time being.

“Team Canada is still in Washington working on a deal and they’re going to be there until we either have a conclusion of a good deal for Canada or that it’s time to take a pause and walk away,” said Volpe, president of Canada’s national Automotive Parts Manufacturers’ Association.

Reuters

1:44 p.m. EDT: Trump using ‘chaos and intimidation’: Perrin Beatty

It’s important for Canada to “keep our cool,” said former Conservative foreign affairs minister Perrin Beatty, who served in former prime minister Brian Mulroney’s government during NAFTA negotiations.

“If he’s doing it with Canada, he’s doing it with the other countries as well,” Beatty said in an interview on CTV News Channel on Friday. “I think there are about 69 countries that he unilaterally imposed these higher tariffs on.”

“And what he’s trying to do is to use chaos and intimidation as a means of achieving his political goals,” added Beatty, who also served as CEO of the Canadian Chamber of Commerce.

Beatty said while the majority of Canadian goods are exempt from the higher tariffs because they’re compliant with the Canada-U.S.-Mexico Agreement, that deal is up for review next year, so Canada should take its time and not be rushed into making a bad deal.

“When you look at what happened with the rush by the Europeans, the Japanese and others, this is essentially capitulated to Donald Trump, and I don’t think we should be doing that,” Beatty said.

Spencer Van Dyk, CTVNews.ca journalist

1:39 p.m. EDT: LeBlanc returns tonight after no meetings with U.S.

Canada’s minister for trade with the U.S., Dominic LeBlanc, will head back to New Brunswick tonight, CTV News has learned.

He had several chats with American Commerce Secretary Howard Lutnick in recent days, including an in-person meeting Tuesday.

However, the two have not met since and LeBlanc hasn’t spoken to anyone on the American side today.

Last week, LeBlanc emerged from talks with the secretary feeling encouraged.

“Canadians expect us to take the time necessary to get the best deal we can in the interest of Canadian workers,” LeBlanc said at the time, casting doubt on the feasibility of reaching a deal with the U.S. before the Aug. 1 deadline, which has since passed.

Luca Caruso-Moro, CTVNews.ca journalist

1:30 p.m. EDT: Canada should refrain from any retaliatory measures: Sask. Premier Moe

Saskatchewan Premier Scott Moe says U.S. President Donald Trump’s new 35 per cent tariffs are disappointing and that Canada should refrain from any retaliatory measures that would cause harm to Canada’s economy.

However, he says that efforts remain in effect to ensure the Canada-U.S.-Mexico trade agreement (CUSMA) remains in effect.

“While Saskatchewan is disappointed in the Trump administration’s decision to increase tariffs on non-CUSMA compliant Canadian goods to 35 per cent, Canada’s efforts to ensure CUSMA remains in effect means that 95 per cent of Saskatchewan exports to the US will remain tariff-free,” he said in a statement.

Moe says CUSMA remaining in effect is very significant given the U.S. has imposed across-the-board tariffs on many countries.

Hayatullah Amanat, CTV News journalist. Read the full story here.

1:20 p.m. EDT: Brampton mayor slams tariff hike

Brampton Mayor Patrick Brown is warning that thousands of local auto sector jobs are now in jeopardy following a major escalation in the U.S.-Canada tariff war, calling the new penalties “foolish, misguided, (and) unjustified.”

“We have an unpredictable U.S. President right now that is causing havoc to our economy,” Brown told CP24 on Friday morning. “This is not something that we tolerate as a country. There are families that are going to be unable to provide for themselves because of these foolish, misguided, unjustified tariffs.”

Brown said the decision by Stellantis to pause the reopening of its Brampton assembly plant — originally being retooled to manufacture electric vehicles — will leave at least 3,000 workers in limbo, along with “thousands more” in the local supply chain.

“I’m very nervous about our automotive jobs,” Brown said. “But I’d also say there’s a supply chain that supports these auto plants, and we have just as many jobs in that supply chain that are at risk.”

Jermaine Wilson, CTVNewsToronto.ca journalist. Read the full story here.

1 p.m. EDT: ‘Mixed emotions’ for Canadian businesses: lawyer

The higher tariffs are likely leading to “mixed emotions” from Canadian businesses, said William Pellerin, an international trade lawyer with McMillan and former litigator for Canada in trade disputes with the U.S., in an interview with CTV News Channel on Friday.

“On the one hand, the escalation actually doesn’t really hurt or affect most businesses, because ultimately they’re not going to be paying that 35 per cent for most products that we ship to the United States,” Pellerin said, pointing to the vast majority of products being exempt because they are CUSMA-compliant.

“On the other hand, though, I think what’s a bit more problematic is the lack of relief for those companies that were really suffering,” he added, nothing the industries facing sectoral tariffs, such as auto, copper, and aluminum and steel.

Pellerin said companies hoping for some reprieve — if the U.S. Court of Appeal deems Trump’s tariffs illegal — will unfortunately likely have to wait a while, with the judicial process expected to take months.

Spencer Van Dyk, CTVNews.ca journalist

12:43 p.m. EDT: Wall Street slumps and bond yields sink

Stocks slumped in afternoon trading on Wall Street Friday and Treasury yields fell sharply after the government reported a sharp slowdown in hiring last month.

Markets are also reacting to the latest tariff news. U.S. President Donald Trump once again extended the date at which punishing import taxes will take effect for a long list of countries. The tariffs are now expected to take effect Aug. 7 for countries that have yet to make a deal with the U.S.

The S&P 500 fell 1.2 per cent. The decline marks a sharp shift for the index, which hasn’t fallen by more than one per cent since June. It is also on track for a weekly loss following last week’s record-setting streak.

The Dow Jones Industrial Average fell 451 points, or one per cent as of 12:01 p.m. Eastern. The Nasdaq composite fell 1.6 per cent.

Reuters

12:24 p.m. EDT: Conservatives, Greens react to higher tariffs

In a post to social media, Conservative Leader Pierre Poilievre said his party is continuing to hold out hope for a deal with zero tariffs.

“That is the deal Canada had before, and the prime minister should accept nothing short of that,” Poilievre wrote. “We must stand our ground and put Canada first.”

Both Carney and U.S. Ambassador to Canada Pete Hoekstra have signalled any deal struck with Trump is likely to include some baseline level of tariffs.

“We must also take back control of our economic future by breaking our dependence on the U.S.,” Poilievre also wrote. “We call on the Liberals to repeal anti-development laws, and cut taxes on work, energy, investment and home building to make our economy strong, self-reliant and sovereign.”

Green Party Leader Elizabeth May said she doesn’t think Canadians will blame the prime minister or federal government for failing to secure a deal with Trump.

“We all know the U.S. president is unpredictable, irrational and unreliable as a negotiator, an ally or a world leader,” May wrote in a statement, adding she supports Carney’s announcement from this week that Canada will recognize a Palestinian state in September, despite knowing it could create a wedge in the negotiations with Trump.

Spencer Van Dyk, CTVNews,ca journalist

11:40 a.m. EDT: White House ‘undermining historic relationships,’ says governor

Maine Gov. Janet Mills called tariffs on Canada “nothing more than a tax on the American people” on X.

“The White House is undermining historic relationships, shaking the confidence of markets, and causing needless economic challenges and uncertainty,” she wrote in a subsequent post.

Mills was in New Brunswick last week to meet local business leaders and Premier Susan Holt to talk trade, among other topics.

Luca Caruso-Moro, CTVNews.ca journalist

11:10 a.m. EDT: What is a tariff?

A tariff is a tax on imports.

In the case of Trump’s tariffs, American companies importing products into the United States pay that additional levy. Vice versa, with Canadian countermeasures in place, Canadian companies importing certain American products pay an additional tax.

Governments can impose tariffs for various reasons, including to generate revenue, protect domestic industries, and as a diplomatic tool to disincentivize trade with certain other countries.

Trump made clear throughout his re-election campaign that he favours protectionist policies and is a major proponent of tariffs for all three of the above reasons.

His first threats to impose tariffs on Canada came in the fall, when he pledged across-the-board 25 per cent levies in response to concerns about the border. It’s those tariffs that the president has just increased to 35 per cent.

But beyond using tariffs to push Canada to address Trump’s border concerns, the president has lauded the use of tariffs on their own merit. He has expanded his tariffs regime to include reciprocal tariffs on the vast majority of countries’ imports, plus a series of sectoral tariffs on autos, steel and aluminum, and copper.

Speaking to reporters at the White House on Thursday, Trump said the U.S. is “taking in literally trillions of dollars for the country,” referencing the revenue generated from American consumers paying higher tariffs on imports.

“This is making our country very rich and respected,” he said.

Spencer Van Dyk, CTVNews.ca journalist

10:30 a.m. EDT: Canada’s ‘time to grow up!’ says Ontario mayor

Mississauga, Ont. Mayor Carolyn Parrish posted a rallying cry to social media Thursday evening following the news of Trump’s increased tariffs: “Canada comes of age!”

“Time to grow up! Batten down the hatches and expand to new markets. Trade east west. Remove restrictions in our own country,” she wrote on X.

“Refine our own oil! Buy nothing from USA. Thank you Trump for a new tomorrow!”

Luca Caruso-Moro, CTVNews.ca journalist

9:55 a.m. EDT: No deal better than a bad one, groups say

Canadian business groups anxiously watching trade negotiations with the U.S. don’t want the country to rush into a deal but say the uncertainty is weighing on their members.

The Canadian Chamber of Commerce says it feels spending a little bit more time on crafting the right deal is well worth the wait because it will deliver lasting benefits.

However, the group also feels businesses in Canada and the U.S. urgently need more certainty.

The Canadian Federation of Independent Business agrees. It warns the current uncertainty is keeping many of its 100,000 members from planning for the future.

CFIB says no deal is better than a bad deal, but the lack of resolution has left companies unsure whether they will need to scale back operations or lay off staff.

The Canadian Press. Read the full story here.

9:40 a.m. EDT: Tariffs tarnish a 60-year relationship: auto expert

Canada and the U.S. have been building cars together for 60 years – a relationship that has helped the North American market remain competitive, according to Global Automakers of Canada CEO David Adams.

Each country, including Mexico, brings its own “strength,” Adams told CTV News Channel. “If we’re squabbling” amongst ourselves, he added, it leaves automakers vulnerable.

While most auto parts are protected by CUSMA, Canada’s free trade deal with the U.S. and Mexico, production has already started to slow, Adams said.

That cooling is due to manufacturers waiting for the trade war to slow, and for commercial policy to solidify between the U.S. and its neighbours.

Luca Caruso-Moro, CTVNews.ca journalist

9:35 a.m. EDT: Markets open lower

Markets are reacting early Friday to the latest tariff news. The S&P 500 fell one per cent in the first few minutes of trading. The Dow Jones Industrial Average sank 383 points, or 0.8 per cent. The Nasdaq composite was down 1.4 per cent.

The Associated Press

9:20 a.m. EDT: TSX dips

Futures on the Toronto Stock Exchange (TSX) dipped in the premarket Friday as investors wake up to the impact of 35 per cent tariffs.

Stocks were down one per cent on the S&P/TSX index at 1,605,40 points by 7 a.m. Some of the monthly gains were distributed back to the benchmark index.

Joshua Santos, BNNBloomberg.ca journalist

9 a.m. EDT: Small business owner ‘super worried’ about de minimis exemption

The words “de minimis exemption” may not be familiar to all Canadians, but the American government’s move to scrap that tariff carve-out for lower-value parcels may have a significant impact on small businesses across this country.

The exemption excluded duties on shipments of goods into the U.S. worth US$800 or less, but an executive order signed by U.S. President Donald Trump Wednesday will scrap that provision.

“I am super worried about the logistics and costs of this,” said Tamara Bavdek, who founded her Montreal-based jewelry company, This Ilk, 16 years ago.

She works in her home studio with vintage lace to fabricate statement pieces including earrings and necklaces sold online, including on Etsy. She ships her unique works of art internationally, but about a third of her business is now with the U.S.

“The words (de minimis exemption) were not part of my vocabulary until Trump started bringing in tariffs,” said Bavdek. “But I was familiar with the provision. It made a lot of sense that for shipments under a certain amount there was no duty.”

Genevieve Beauchemin, Quebec Bureau Chief, CTV National News

8:20 a.m. EDT: ‘Canadians will be our own best customer’

“While we will continue to negotiate with the United States on our trading relationship, the Canadian government is laser focused on what we can control: building Canada strong,” Carney wrote in a statement posted to X on Friday morning.

“Canadians will be our own best customer, creating more well-paying careers at home, as we strengthen and diversify our trading partnerships throughout the world. We can give ourselves more than any foreign government can ever take away.”

Charlie Buckley, CTVNews.ca journalist. Read the full story here.

8 a.m. EDT: Ford demands 40% counter tariff

Premier Doug Ford of Ontario, which accounts for around 40 per cent of Canadian GDP and is the country’s industrial heartland, demanded Ottawa slap a 50 per cent counter tariff on imports of U.S. steel and aluminum.

“Canada shouldn’t settle for anything less than the right deal. Now is not the time to roll over. We need to stand our ground,” he said in a post on X.

Reuters

7:30 a.m. EDT: The CUSMA shield

A critical carveout is likely to shield most Canadian goods from the devastating duties.

The White House has said the tariffs won’t be applied to goods that are compliant with the Canada-U.S.-Mexico Agreement on trade, also known as CUSMA.

CUSMA was negotiated during the first Trump administration to replace the North American Free Trade Agreement.

Companies can claim preferential treatment under CUSMA if they meet its rules of origin. While it is different depending on the product, generally it requires a specific amount of the goods be made of products or with labour originating from Canada, Mexico or the United States.

About 80 to 90 per cent of Canadian goods might be able to comply with CUSMA’s rules of origin, said Michael Dobner, the national leader of economics and policy practice at PricewaterhouseCoopers Canada.

Not all exporters have filed the necessary paperwork to avoid the duties.

There’s been an increase in businesses claiming preferential treatment under CUSMA but it’s not clear exactly how much of Canadian exports are currently compliant.

The Canadian Press. More details on CUSMA here.

Here’s a rundown of how world leaders and companies responded:

Swiss watch industry group `very disappointed’

The Federation of the Swiss Watch Industry says it is “very disappointed and surprised” by the 39% tariffs imposed on Swiss exports.

Swiss luxury watch brands -- with products that cost tens of thousands, if not the hundreds of thousands, of euros -- are expected to be hit hard by the tariffs.

“As Switzerland has eliminated all custom duties on imported industrial products, there is no problem with reciprocity between Switzerland and the U.S.,” the federation said in a statement. “The tariffs constitute a severe problem for our bilateral relations. As an additional deadline has been granted, we expect that the Swiss authorities continue to negotiate and find a better solution.”

Swatch and Rolex declined to comment Friday.

The Associated Press

Kosovo lifts tariffs on U.S. goods

Kosovo’s Cabinet on Friday decided to remove trade tariffs for American products imported into Kosovo.

“We are grateful for our enduring relationship with the United States of America,” Prime Minister Albin Kurti said in a statement on X.

Kosovo’s goods have a 10% tariff when exported to the United States.

The Associated Press

Furniture maker will pass on costs to Americans

Norway’s largest furniture manufacturer, Ekorne, says it will increase its prices for American customers as a result of the 15% tariffs, Norwegian broadcaster TV2 reported.

Tine Hammernes Leopold, Ekorne’s chief executive, told TV2 that the manufacturer has to adjust its prices, which are assessed based on individual markets.

The furniture company earned more than $96 million last year in the U.S., TV2 reported.

The Associated Press

India plays down any strain

India’s Foreign Ministry has dismissed any strain in relationship with the U.S. following the imposition of 25% tariffs on Indian goods.

Ministry spokesman Randhir Jaiswal said Friday that India and U.S. share a comprehensive global strategic partnership, which is anchored in shared interests, democratic values and robust people-to-people ties.

“This partnership has weathered several transitions and challenges,” he said. “We remain focused on the substantive agenda that our two countries have committed to and are confident that the relationship will continue to move forward.”

The ministry also said that India’s relationship with Russia was “steady and time-tested.” The Trump administration also imposed an additional import tax on India because of New Delhi’s purchase of Russian oil. Jaiswal said India’s broader stance on securing energy needs was guided by availability in the markets and prevailing global circumstances.

The Associated Press

South Africa supporting companies

South Africa’s government is finalizing a package to support companies that will be affected by the 30% tariff on its exports to the U.S. announced by President Donald Trump.

The citrus and vehicle manufacturing industries in South Africa are among those expected to be hit hard.

President Cyril Ramaphosa said in statement Friday that the country would continue negotiating with the U.S. government regarding the tariffs, also noting that some key products like copper, pharmaceuticals and energy products were exempted from Trump’s reciprocal tariffs.

Anticipating the imminent 30% tarriffs, South Africa’s central bank has revised the country’s annual growth forecast from 1.2% to 1%, citing the tariffs’ impact on agricultural and manufacturing exports.

Labour federation Cosatu, which represents over 1.5 million workers, has warned of potential jobs losses.

The Associated Press

Novartis reacts to 39% tariff

Swiss pharmaceutical company Novartis said in a statement that it was reviewing U.S. President Donald Trump’s executive order that imposes a 39% tariff on Switzerland.

“We remain committed to finding ways to improve access and affordability for patients,” it said.

The Associated Press

Thailand says rate reflects `partnership’

Thailand’s finance minister says the 19% tariff rate imposed by the U.S. “reflects the strong friendship and close partnership” between the two countries.

Thailand’s new rate of 19% was reduced from 36%, similar to other rates imposed on Southeast Asian nations, such as Vietnam, Cambodia and the Philippines.

Finance Minister Pichai Chunhavajira wrote in a social media post on Friday that it would “maintain Thailand’s competitiveness on the global stage” and opens the “door to economic growth,” but also acknowledged it would pose problems for some sectors of the economy and said that “comprehensive support measures have been prepared.”

Speaking to reporters at a news conference in Bangkok later Friday, Pichai said that the deal will still need more time to be hammered out in details.

The Associated Press

Pakistan welcomes 19% tariffs

Pakistan on Friday welcomed a new tariff arrangement with the United States that sets a 19% duty on Pakistani exports, calling it a positive step that could boost trade and economic growth.

The new rate is lower than the 29% tariff initially announced by Trump and below the 25% currently imposed on neighboring India.

In a statement, the Finance Ministry said the agreement reflects a “balanced and forward-looking approach” by U.S. authorities and will help keep Pakistani goods competitive in the American market compared to other South and Southeast Asian countries.

The ministry said the revised tariff is expected to benefit key export sectors, particularly textiles, which remain the backbone of Pakistan’s export economy. The ministry said Pakistan will continue to engage closely with Trump and the U.S. administration to promote the shared goals of economic development and mutual prosperity.

The Associated Press

Norway wants ‘zero tariffs’

Norwegian Prime Minister Jonas Gahr Støre told newspaper VG that he believes the Scandinavian country should have “zero tariffs.”

Gahr Støre, following the White House’s announcement, said Norwegian officials are still in talks with Washington in the hopes of eliminating the duties altogether.

Norway got hit with an expected 15% tariff.

The Associated Press

Switzerland hit with 39% tariff

The land of luxury watches, pharmaceuticals and secretive financial services was reeling Friday, Switzerland’s National Day, upon learning it had been slapped with a 39% tariff, although Trump had proposed a 31% rate in April.

The Swiss government said officials will continue to seek a negotiated solution.

“The Federal Council notes with great regret that, despite the progress made in bilateral talks and Switzerland’s very constructive stance from the outset, the US intends to impose unilateral additional tariffs on imports from Switzerland,” the government said in a post on X.

The Associated Press

Trump’s 35% tariff for goods from Canada

Trump has raised the tariff rate on U.S. imports from Canada to 35% from 25%, effective Friday.

The announcement from the White House late Thursday said Canada had failed “to do more to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug or human traffickers, criminals at large, and illicit drugs.”

Trump earlier had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries.

Canada was not included in Trump’s updated list of tariff rates on other countries announced late Thursday. Those import duties are due to take effect on Aug. 7.

The Associated Press

Malaysia hails ‘significant achievement’

Malaysia’s Trade Ministry said Friday that the U.S. tariff reduction from 25% to 19% was a “significant achievement” as the deal was struck without compromising key national interests.

“The 19% rate roughly tracks the rate of other countries in the Southeast Asian region,” the ministry said in a statement. “Most importantly, Malaysia had stood firm on various ‘red line’ items, and the 19% tariff rate was achieved without compromising the nation’s sovereign right to implement key policies to support the nation’s socio-economic stability and growth.”

The ministry said that Malaysia’s economy remains resilient despite global headwinds, citing strong domestic demand and ongoing structural reforms.

The statement didn’t give further details but officials previously said non-tariff barriers such as halal certification, which affects U.S. beef and poultry exports, along with digital trade and government procurement were sticky points. It’s unclear what concessions Malaysia made.

The Associated Press

Cambodia will impose no tariffs

Cambodia’s Deputy Prime Minister Sun Chanthol, who led his nation’s trade talks with the U.S., thanked Trump for setting the tariff rate on Cambodian goods at 19% and said his country will impose zero tariffs on all American goods.

When Washington originally posted its list of notional “reciprocal” tariffs, the rate for goods from Cambodia was 49%, one of the highest in the world. It had estimated that Cambodian tariffs on U.S. imports averaged 97%.

Sun Chanthol also said Cambodia would purchase 10 passenger aircraft from Boeing in a deal they hoped to sign later this month. Several other nations had already announced similar aircraft purchase deals as part of their trade packages.

Trump had threatened to not conclude a deal with reduced tariffs if Cambodia and Thailand did not stop a recent armed conflict over border territory. The two nations agreed on a ceasefire beginning Tuesday that appears to be holding.

Cambodia publicly celebrated Trump’s peace initiative, suggesting he deserved a Nobel Prize for his intervention. Sun Chanthol said Friday that Cambodia would nominate him for the honour.

The Associated Press

Australia’s tariff rate is vindication, minister says

Australian Trade Minister Don Farrell says gaining the minimum U.S. tariff on exports including beef, lamb, wine and wheat gave Australia a competitive advantage over some competitors.

Farrell told reporters Australia did not introduce tariffs on U.S. goods at any point, and added, “I haven’t seen any case or any example where the retaliatory imposition of tariffs has resulted in a country being in a better position.”

Farrell argues that no U.S. tariffs can be justified because Australia imposes no tariffs on its bilateral free trade partner. The United States has enjoyed a trade surplus with Australia for decades.

Australian Prime Minister Anthony Albanese has been criticized for failing to secure a face-to-face meeting with Trump to discuss trade.

The Associated Press

Japan welcomes executive order

Japanese Chief Cabinet Secretary Yoshimasa Hayashi welcomed Trump’s signing of the executive order setting Japan’s new reciprocal tariffs as a step that would reduce uncertainty of the U.S. trade policy and its negative impact on the global economy, including that of Japan.

Hayashi, however, said Japan still needs to closely examine the measures and continue urging prompt implementation by the U.S. government to carry out the agreement, including reduction of tariffs on automobiles and auto parts.

Hayashi acknowledged that Japan’s new tariff rate of 15% is a “major reduction” from the initially imposed 25%, but his government will continue to watch and mitigate its impact on Japanese exports, including by providing financial assistance for small and medium-sized businesses.

The Associated Press

New Zealand to lobby for lower rates

New Zealand officials said they would lobby the administration for a change to the 15% tariff announced for the country’s exporters to the U.S. It’s an increase from the original 10% baseline announced for New Zealand in April.

“We don’t think this is a good thing. We don’t think it’s warranted,” Trade Minister Todd McClay told Radio New Zealand Friday. He said New Zealand appeared to have been targeted for a larger levy because the country sells more to the U.S. than it imports, but that the gap of about half a billion dollars each year was “not significant or meaningful.”

Neighboring Australia dodged an increase to remain at 10%, but it buys more from the U.S. than it exports, McClay added.

The United States in January overtook Australia to become New Zealand’s second-largest export partner, behind China. New Zealand exports are largely made up of meat, dairy, wine and agricultural machinery.

The Associated Press

Taiwan: Final negotiations with U.S. to come

Taiwan President Lai Ching-te said Taiwan had yet to engage in final negotiations with the U.S. owing to scheduling difficulties and that he was hopeful the final tariff rate would be reduced even further after a final round of talks.

The Trump administration hit Taiwan with 32% tariffs, and lowered it to 20% on Thursday. Taiwan was notified on Thursday by the administration of the lower rate.

“Twenty percent from the beginning has not been our goal. We hope that in further negotiations we will get a more beneficial and more reasonable tax rate,” he told reporters in Taipei on Friday.

Lai also linked trade talks to security issues, as the U.S. is Taiwan’s largest ally even though it does not formally recognize the island. “We want to strengthen U.S. Taiwan cooperation in national security, tech, and multiple areas,” he said Friday.

The U.S. is Taiwan’s most important export market and strategic ally, Lai said in an earlier statement Friday morning.

The Associated Press

Cambodia thanks Trump

Cambodia Prime Minister Hun Manet expressed his thanks to Trump for the dropping of tariffs from 36% to 19% and he called the reduction “good news” for Cambodia.

Posted on his social media platform, Hun Manet said Trump had not only helped broker a ceasefire between Cambodia and Thailand forces after nearly a weeklong clash but also helped Cambodia’s economy by lowering tariffs.

“This is good news for the people and economy of Cambodia to continue developing the country,” Hun Manet said.

The Associated Press

Thailand negotiates lower rates

Thailand’s government spokesperson Jirayu Houngsub said Thailand says the U.S. agreed to reduce the tariffs rate from 36% to 19%, a rate similar to those imposed on many other Southeast Asian countries such as Vietnam and the Philippines.

“It’s one of the major successes of Team Thailand in a win-win approach, to secure the country’s export base and economic security in a long run,” he said in a statement. He didn’t immediately say what was the latest offer Thailand made to the U.S.

The agreement came days after a ceasefire between Thailand and Cambodia to halt the nearly weeklong clashes that killed at least 41 people. It was brokered with U.S. pressure as Trump said he would not move forward with trade agreements if the conflict continued.

The Associated Press