President Trump has sharply escalated trade tensions by signing an executive order that raises tariffs on Canadian imports from 25% to a hefty 35%. This marks a significant increase and signals the administration’s mounting frustration over stalled trade negotiations with Canada. The new tariff rates are set to take effect immediately, impacting a wide array of Canadian goods entering the U.S.

The tariff hike is part of a broader strategy aimed at pressing countries to forge new trade agreements with the United States. According to recent announcements, dozens of countries now face tariffs ranging from 10% to as high as 40%, depending on their success in negotiating fresh deals with the Trump administration. Major U.S. allies such as the U.K., European Union, Japan, and South Korea have already reached agreements to avoid the steepest tariffs, but Canada remains conspicuously absent from that list.

Negotiations between the U.S. and Canada have struggled in recent weeks, particularly over issues like access to Canada’s tightly regulated dairy market. Despite numerous high-level meetings and diplomatic efforts, a breakthrough has yet to materialize. With no deal in place as the deadline approached, President Trump made good on his threat, stating that countries failing to reach an agreement would receive official notice of new tariffs by midnight.

The move is expected to have significant economic implications, particularly for industries on both sides of the border that rely on cross-border trade. U.S. officials have left the door open for Canada to avoid the higher tariff, suggesting that talks could resume if Canada returns to the table and shows increased flexibility. Until then, the new 35% rate stands as a stark reminder of the growing challenges in North American trade relations.