Donald Trump, the U.S. President, has increased tariffs on Canadian imports. The new tariffs will be 35% on products not under the USMCA trade agreement. This will be effective from August 1, 2025. Goods rerouted to avoid tariffs will face a 40% levy. The U.S. cites Canada's inaction as the reason. Canada was the second-largest U.S. trading partner in 2024.