U.S. Imposes New Tariffs on Canada, While Taiwan Talks Progress and Switzerland Faces Economic Headwinds

By / / Breaking News

Key Takeaways

  • The United States has announced a significant increase, raising tariffs to 35% on Canadian exports not covered by the USMCA, directly impacting vital sectors including lumber, steel, aluminum, and automobiles.
  • Canadian Prime Minister Carney expressed disappointment over the U.S. action but reaffirmed Canada's commitment to CUSMA, the world’s second-largest free trade agreement, emphasizing a focus on strengthening the Canadian economy.
  • Negotiations between the U.S. and Taiwan regarding tariffs are showing positive momentum, with an interim rate set below the original and a well-received offer, signaling progress towards a final agreement.
  • The Swiss Franc has weakened considerably as Switzerland anticipates being heavily affected by newly imposed U.S. tariffs.

New U.S. tariffs are set to significantly impact Canadian exports, with President Trump announcing a 35% increase on goods not covered by the USMCA. This move is expected to particularly affect Canada's lumber, steel, aluminum, and automobile sectors, which are already feeling the strain from existing U.S. duties.

Canadian Prime Minister Carney stated the Canadian government's disappointment regarding this action. Despite the new tariffs, Carney reiterated Canada's commitment to CUSMA, highlighting its status as the world’s second-largest free trade agreement by trade volume. The Prime Minister also emphasized that while negotiations with the United States will continue, Canada's primary focus remains on strengthening its own economy.

In separate trade developments, U.S. officials have provided an optimistic outlook on ongoing tariff discussions with Taiwan. An interim rate has been established that is both below the original proposal and significantly lower than rates for several other key trading partners still in talks. U.S. officials confirmed that Taiwan’s statement about ongoing talks is accurate, and the positive reception of Taiwan’s offer suggests a final agreement may be close.

Meanwhile, the Swiss Franc has experienced a weakening trend as Switzerland prepares to face the brunt of new U.S. tariffs. The Wall Street Journal reported that these tariffs are expected to hit the Swiss economy hard.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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