Trump Announces New Tariffs on Canadian Goods Amid Trade Policy Changes

On July 31, 2025, President Trump issued two executive orders that refined U.S. trade policy significantly. These pivot on Reciprocal Tariffs and a particular focus on Canadian goods in the context of drug trafficking and border security. The result is a substantial 35% tariff on Canadian imports under specified conditions not aligned with the USMCA framework. This follows a series of amendments to the administration’s ongoing reciprocal tariff strategy, which started with Executive Order 14257. These new measures further amend current tariff rates on imports from countries with significant trade deficits with the U.S., as well as directly impact goods from Mexico, maintaining a 25% tariff for an additional 90 days. Meanwhile, the U.S. signed various framework trade agreements with multiple countries like Japan, UK, and EU, setting specific reciprocal tariffs, modifying terms for goods entry, and establishing considerable economic commitments such as tariffs adjustments and mutual investments. These agreements elucidate the U.S.’s approach towards fostering diplomatic economic relations while maintaining protectionist measures.