Trade Shockwave: Trump Slaps 35% Tariff on Canada and 39% on Switzerland

By Ronald Kapper, NewsSutra

In a sweeping escalation of trade tensions, former President Donald Trump has issued an executive order setting new tariffs on imports from Canada, Switzerland and dozens of other nations. The measures—set to take effect as soon as August 7 or 8, 2025—include a 35% duty on Canadian goods and a 39% levy on Swiss exports, as part of a broader strategy to reshape U.S. trade policy and address persistent bilateral deficits.New York Post+3Financial Times+3MarketWatch+3

Key Elements of the Tariff Plan

Canada: The U.S. raised its tariff on many Canadian imports from 25% to 35%, effective August 1, citing repeated concerns over illicit fentanyl crossing the border and unresolved trade imbalances.Fox BusinessAl Jazeera

Switzerland: A 39% tariff now applies to Swiss goods—particularly luxury watches and other high-end items—creating significant disruption for exporters like Richemont and Swatch. While pharmaceuticals remain temporarily exempt, Swiss authorities are preparing to renegotiate before the tariff deadline.MarketWatchReutersReuters

From Brazil (50%) and India (25%) to Taiwan (20%), officials unveiled a wide range of new rates covering dozens of economies. Many nations that secured prior agreements avoided the steepest hikes; others head into diplomatic talks to mitigate the fallout.Al Jazeera+11Reuters+11apnews.com+11

Market Fallout and Economic Repercussions

Global markets reacted swiftly. The Swiss Market Index fell sharply upon news of the tariffs, while shares of Swiss pharmaceutical giants and luxury brands slipped. Meanwhile, broader indices in Asia and Europe dropped as investors digested the news.MarketWatch

Analysts warn that elevated tariffs—some reaching 50%—could raise consumer prices, disrupt global supply chains, and strain relations with key allies. While the U.S. dollar weakened slightly, stock markets showed volatility as traders brace for retaliation.theguardian.comReuters

Diplomatic Response: Negotiation or Defiance?

Canada reacted with disappointment, with Trade Minister Dominic LeBlanc confirming ongoing talks but disputing the tariff’s justification. Prime Minister Mark Carney is expected to engage directly with Trump in the coming days to seek relief.MarketWatch+3Financial Times+3abc7ny.com+3

Switzerland’s business minister confirmed a special cabinet meeting is scheduled to explore revised trade proposals before August 7. Potential options include expanded Swiss investment in U.S. infrastructure and more U.S. liquefied natural gas purchases to offset economic damage.Reuters

Multiple nations are evaluating whether the tariffs violate World Trade Organization rules or bilateral trade agreements, with legal challenges already under way.en.wikipedia.org

What’s Ahead: Stakes for the Global Economy

• Effective Dates: Canada’s new tariff is already in force, while Swiss tariffs become effective on August 7 or 8, 2025, depending on final rule timing.

• Consumer Impact: Expect price hikes for goods ranging from Canadian auto parts and lumber to Swiss watches and pharmaceuticals in the U.S. market.

• Diplomatic Maneuvers: Negotiations will intensify. Countries spared the steepest rates may push harder to extend similar grace to Canada and Switzerland.

• Legal Contests: At least seven lawsuits have already been filed in U.S. courts, challenging Trump’s authority under the International Emergency Economic Powers Act (IEEPA).whitehouse.gov+2en.wikipedia.org+2en.wikipedia.org+2