'A big day for America': Trump hits Canada with 35% tariff hours before trade deal deadline

By Shannon Cook

The US president raised Canada's tariff rate from 25% to 35% in a new executive order while announcing new levies for dozens of other countries.

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Trump raised Canada's tariff rate from 25% to 35% in a new executive order, the White House says.

The new levy will come into effect in just hours.

The White House says the higher rate is due to the flow of drugs and comes as a result of its inaction in the "illicit drug crisis" and its "retaliation against the United States" for its actions to address the threat.

It added that the country "has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs" and Trump has increased the country's tariff to "effectively address the existing emergency".

The White House statements detail that goods captured by the United States-Mexico-Canada Agreement (USMCA) are exempt from the 35% tariff.

Earlier this month, in a letter to Canada's Prime Minister Mark Carney, Mr Trump wrote: "I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers."

In a statement, Mr Carney said: "Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1.

He continued: "Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries."

Meanwhile, Syria has received the highest tariff rate of 41%, while Laos and Myanmar have received 40% tariffs each.

Experts have warned that Trump's new tariffs were expected to hit Asia's economies hard.

India and Taiwan received levies of 25% and 20% respectively.

Switzerland received a 39% tariff - making it the only country that does brisk trade with the US to receive such harsh rates.

Iraq and Serbia came in at 35% while Algeria, Bosnia and Herzegovina, Libya, and South Africa received a 30% rate.

However, countries that have reached framework deals with the US - Japan, South Korea, Vietnam, Indonesia and the Philippines - have levies ranging from 15% to 20%.