Trump imposes tariffs on Switzerland (39%), Canada (35%), and more countries.

Trump imposes tariffs on Switzerland (39%), Canada (35%), and more countries.

In a move to escalate his aggressive trade policy, U.S. President Donald Trump has imposed new tariff rates on several countries, including Switzerland (39%), Canada (35%), and others. The tariffs, which will take effect in seven days, are part of Trump's strategy to address large and persistent annual U.S. goods trade deficits and promote domestic manufacturing [1].

The new tariff rates are part of an executive order signed by Trump on July 31, 2025, which raises the baseline tariff rate to 10% for countries where the U.S. exports more goods than it imports. The rates escalate further for countries with larger trade deficits, with some facing up to 41% tariffs [2].

The tariffs on Canadian goods, the U.S.'s second-largest trading partner, were increased from 25% to 35%. This move comes as a response to Canada's failure to cooperate in curbing fentanyl flows into the U.S., according to Trump [1].

Switzerland, a major trading partner, was hit with a 39% tariff. The tariffs on Swiss goods are part of Trump's broader strategy to address the trade imbalance with countries that have high tariff rates on U.S. goods [1].

The tariffs are expected to have significant implications for consumers and businesses in the U.S. and abroad. Economists warn that tariffs can lead to higher costs for consumers, but Trump and White House officials have pointed to relatively flat inflation since he returned to the White House to argue that the tariffs have not had a significant impact on inflation [2].

Trump's tariff policy has been criticized by some economists and political analysts, who argue that it could lead to a trade war and potentially harm the U.S. economy. However, Trump has maintained that his tariffs are necessary to address the trade imbalance and protect American jobs [1].

The new tariffs come as Trump continues to negotiate trade deals with several countries. Despite the tariffs, Trump has expressed optimism about the possibility of reaching a durable tariff agreement with China by an August 12 deadline [1].

References:
[1] https://www.thehindu.com/news/international/us-president-donald-trump-sets-10-to-41-reciprocal-tariffs-on-dozens-of-countries-exports/article69881205.ece
[2] https://www.usatoday.com/story/news/politics/2025/07/31/trump-signs-order-sweeping-new-tariffs-rates/85467036007/