In a dramatic escalation of trade tensions, US President Donald Trump on Thursday signed an executive order increasing tariffs on Canadian imports from 25 percent to 35 percent. The new rates take effect on Friday, the White House confirmed in a late-night statement.
The move comes just hours after Trump criticised Canada’s recent decision to support Palestinian statehood, prompting speculation that the tariff hike may have been politically motivated. “Wow! Canada has just announced that it is backing statehood for Palestine,” Trump posted on his Truth Social platform. “That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!”
Legal experts suggested the social media remarks could complicate the administration’s defence in an ongoing court battle over the president’s tariff authority.
The White House said the tariffs were imposed under the International Emergency Economic Powers Act (IEEPA), a 1977 law that allows presidents to regulate commerce during national emergencies. On the same day, the administration urged a federal appeals court to overturn a previous ruling that found Trump lacked the legal basis to use IEEPA to implement certain trade restrictions.
Under the new trade policy announced Thursday, the administration also introduced a “universal” tariff framework. Countries with which the US maintains a trade surplus will continue to face a 10 percent baseline tariff — unchanged from the rate implemented on April 2 — while those with a trade deficit will see a minimum 15 percent rate.
However, the tariff increase for Canada is a separate measure. According to the White House, goods that are compliant with the United States-Mexico-Canada Agreement (USMCA) will be exempt from the 35 percent rate, potentially softening the blow for some sectors.
Meanwhile, the president’s authority to impose such sweeping tariffs remains under judicial scrutiny. A federal appeals court, expressing scepticism during oral arguments on Thursday, is reviewing whether Trump exceeded his legal powers under IEEPA. Observers say the outcome could have broad implications for the future of US trade policy and executive power.
