Global News FreightWaves Trump sets new tariffs
on global trade partners
stock market drops

Noi Mahoney, Friday, August 01, 2025
Original Article: https://www.freightwaves.com/news/trump-sets-new-tariffs-on-global-trade-partners-stock-market-drops
Articles Reproduced by Permission of FreightWaves

The White House said it will impose a 35% tariff on goods imported from Canada beginning on Aug. 7. (Photo: Jim Allen/FreightWaves)

President Donald Trump announced on Thursday steep tariffs on exports from dozens of U.S. trade partners that have not confirmed a trade pact in advance of a Friday deadline.

About 40 countries that the U.S. runs a trade deficit will now face a minimum 15% duty rate on exports.

Some U.S. trade partners will be hit with even steeper rates, such as 50% for goods from Brazil, 39% for Switzerland, 35% for Canada, 25% for India and 20% for Taiwan, according to a presidential executive order.

U.S. stocks were sinking in early trading on Friday, with the Dow Jones Industrial Average dropping around 1.6%, the S&P 500 down 1.73%, and the tech-heavy Nasdaq Composite falling 2.33% as of 10 a.m. EST.

The latest round of “reciprocal” import tariff rates will start around Aug. 7, White House officials said.

Trump, in a phone interview with NBC News following the order, said he would be open to more trade negotiations, but it was “too late” for other nations to avoid tariffs set to kick by next week, CNBC reported.

“It doesn’t mean that somebody doesn’t come along in four weeks and say we can make some kind of a deal,” Trump said.

Canadian Prime Minister Mark Carney has said he was “disappointed” by the increased tariff on Canadian goods shipped to the U.S.

“While the Canadian government is disappointed by this action, we remain committed to the [United States-Mexico-Canada Agreement], which is the world’s second-largest free trade agreement by trading volume,” Carney said in a statement posted on social media.

“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.”

Canada ranked No. 2 for trade with the U.S. in May at $57.6 billion. Exports from Canada to the U.S. that could be impacted by the tariffs include aluminium, steel, lumber, cars and auto parts.

Goods that are covered by the United States-Mexico-Canada Agreement will not be affected by tariffs, according to authorities in Canada and the U.S.

David French, executive vice president of government relations at the National Retail Federation, said tariffs are taxes that are eventually passed onto consumers.

“We encourage the administration to negotiate binding trade agreements that truly open markets by lowering tariffs, not raising them,” French said in a news release. “Tariffs are taxes paid by U.S. importers and are eventually passed along to U.S. consumers. These higher tariffs will hurt Americans, including consumers, retailers and their employees, and manufacturers, because the direct result of tariffs will be higher prices, decreased hiring, fewer capital expenditures and slower innovation.”

Mike Short, president of global forwarding at C.H. Robinson, said the recent surge in U.S. trade and tariff policies could create a lot of uncertainty for shippers.

“Companies just experienced a very concentrated burst of trade policy activity and most of them have exceptions and nuances,” Short said. “Safe to say our customs team is very busy. Everyone is wanting to understand how these new impacts affect them and we’re working with our customers to educate them not only on their impacts but also provide solutions that could help them reduce exposure.”

The latest tariff increases and the Trump administration’s recent suspension of de minimis exemptions for low value imports will further reshape supply chain strategy, according to Short.

“Tariffs have reshaped how companies approach supply chain planning and global sourcing. The conversation has evolved beyond a simple ‘China +1’ or ‘+2’ diversification model,” Short said.

“What we’re seeing now is a more intentional, tiered sourcing hierarchy that prioritizes geopolitical stability, business continuity, and cost efficiency. We’re working closely with customers to reassess their entire supply chain architecture — from sourcing origins to downstream logistics, port selection, and even last-mile delivery.”