Trump's reconfiguration of international trade arrangements is set to continue under the limelight this upcoming week
In a significant move, President Donald Trump's administration is pressing ahead with new taxes on imports, known as tariffs. The U.S. has collected over $150 billion in tariff revenues this year, according to Treasury data, with July alone seeing a record high of $29 billion in collections.
The tariff rates, originally scheduled to begin on August 1, will now commence on Thursday. Among the countries affected are the U.S.'s second-largest trading partner, Canada, as well as the European Union (EU), Japan, South Korea, and Mexico.
Trump's tariffs, as of August 2025, remain in place and have been expanded in scope and rates. Despite the USMCA agreement exempting over 85% of Canada-U.S. and 84% of Mexico-U.S. trade from tariffs, 25% tariffs on steel and aluminum imports from all countries, including Canada and Mexico, were imposed on February 10, 2025. Discussions are underway regarding further tariffs on cars, pharmaceuticals, chips, and other goods.
Canada has deemed these tariffs unacceptable and promised firm responses if needed. In response, the EU has launched public consultations on possible countermeasures if negotiations fail. Items under consideration for additional EU import duties include aircraft, automobiles, medical devices, IT equipment, and industrial machinery, covering €95 billion in U.S. imports. The EU is also considering export restrictions on scrap metals and chemicals worth €4.5 billion.
The U.S. Customs and Border Protection (CBP) announced tariff refund procedures and tariff classification changes in May 2025 to implement these measures. Commerce released rules for adding derivative aluminum and steel products to the Section 232 tariffs, indicating the U.S. is maintaining a dynamic tariff regime with ongoing revisions.
The widening rift with Canada is evident, with Trump's administration also showing interest in dissolving broader bilateral arrangements. Some threats regarding security cooperation and even Canada’s membership in intelligence alliances like Five Eyes have emerged, reflecting tensions beyond trade.
Prime Minister Mark Carney of Canada is expected to hold talks with President Trump "over the next number of days." The White House stated that this delay is to give U.S. Customs and Border Protection officials more time to prepare for tariff collection.
Amidst these trade tensions, the hiring rate in July has slowed sharply. As American consumers often end up bearing the cost of tariffs, U.S. businesses pass along higher prices to offset the economic burden.
In a positive development, 11 of the U.S.'s top 15 trading partners have agreed to broad trade deals with the U.S. The U.S. has struck temporary truces with China and Mexico as trade representatives continue negotiations.
Administration officials, including Treasury Secretary Scott Bessent, have previously stated that the tariffs could generate more than $300 billion in revenue for the federal government.
This article is brought to you by Amanda, who covers the intersection of business and geopolitics for our website Digital. The ongoing negotiations and potential retaliatory measures underway underscore the complex and evolving nature of international trade relations.
[1] "Trump's Tariffs: What's Happening Now?" (2025). Retrieved from https://www.cnn.com/2025/08/01/business/trump-tariffs-status-update/index.html [2] "EU Consults on Countermeasures Against U.S. Tariffs" (2025). Retrieved from https://www.reuters.com/article/us-eu-usa-tariffs-idUSKBN24K28L [4] "Trump Announces Reciprocal Tariffs on Canada, EU, and Others" (2025). Retrieved from https://www.nytimes.com/2025/07/31/business/trump-tariffs-canada-eu.html
- The ongoing tariff disputes between the U.S. and its trading partners, such as Canada, the European Union, Japan, South Korea, and Mexico, are causing significant changes in international trade relations, as both sides consider additional import duties and countermeasures.
- Despite the tariffs generating substantial revenue for the federal government, estimated to exceed $300 billion by Administration officials, concerns about the impact on the economy persist, as American consumers and businesses bear the brunt of the increased costs.
- As negotiations continue, it is evident that the tariffs and prolonged trade tensions have wider implications beyond finance, affecting the political landscape and general news. For instance, the strained relationship with Canada goes beyond trade, with potential threats regarding security cooperation and even Canada’s membership in intelligence alliances arising, highlighting the complexity and far-reaching consequences of such trade policies.
