Canada Slammed with 35% Tariff as Trade Tensions Surge

August 5, 2025 By WBN News Global

Canada faces a sharp 35% tariff from the U.S., escalating tensions, while Mexico receives a temporary exemption. Switzerland is stunned by a 39% tariff that threatens its pharma and gold exports, and Japan navigates a fragile new pact with the U.S. amid rising political stakes. Meanwhile, U.S.–China negotiations inch forward on rare earth magnets, aiming to restore supply chain stability. Today’s update breaks down the implications and what it means for global markets.

🇨🇦 Canada Faces a Trade Crossroads

Canada’s longstanding trade relationship with the United States took a sharp turn as President Donald Trump imposed a 35% tariff on Canadian goods, citing fentanyl concerns and Canada’s prior retaliation. In contrast, Mexico was granted a 90-day delay from similar measures.

Prime Minister Mark Carney is under pressure to protect domestic industries while preserving the USMCA carveout that effectively reduces Canada’s tariff burden. But with GDP contracting for two consecutive months and no deal in sight, economic uncertainty is mounting.

🇨🇭 Switzerland Hit With Shock 39% Tariff

On its national day, Switzerland was blindsided by a 39% tariff—one of the highest yet in the current trade offensive. Although pharmaceuticals and gold remain partially exempt, the levy signals a breakdown in negotiations. Swiss business groups and lawmakers are scrambling to respond as confidence wavers.

🇯🇵 Japan and China Navigate Fragile Trade Talks

Japan secured a 15% tariff rate under a new U.S. trade agreement, but auto tariffs remain unchanged at 27.5%, stirring concern across a sector that powers 10% of its economy. Political fallout is brewing as Prime Minister Ishiba vows to see the pact through.

Meanwhile, the U.S. and China made cautious progress on rare earth supply chains, restoring partial magnet shipments and suspending some tariffs—though larger tech tensions remain unresolved.

⏱️ Episode Breakdown:
00:00 Introduction
00:10 Canada Faces Trade Crossroads
03:11 Switzerland Stunned By 39% Tariff
06:00 Japanese & Chinese Trade Deals

⚠️ Disclaimer:
Market Update is NOT a financial advisory channel. Nothing in the episode constitutes investment advice. Please consult a licensed financial professional before making investment decisions. All data and claims should be independently verified.

🧠 Why It Matters:
Today’s trade moves aren’t just headlines—they’re reshaping the rules of global commerce in real time. Canada’s harsh tariff hit, Switzerland’s shock treatment, and Japan’s fragile deal all point to a world where bilateral pressure replaces multilateral stability. With U.S. policy swinging unpredictably, allies are forced to choose between diplomacy and retaliation. For businesses, investors, and entire economies, the era of dependable trade frameworks is fading fast—and the volatility that replaces it could define the next decade.

About Market Update:
On Market Update, Tony follows financial and economic developments that intersect with geopolitics in Europe, Asia, and North America.

Contact:
The Team @ WBN News Global WBNNews@wbnn.news

TAGS: #Market Update #US Canada Trade #Global Tariffs #Japan Trade Deal #China Negotiations #Swiss Economy #WBN Market Update