The United States has implemented 50% tariffs on an additional $20bn worth of Canadian goods. This action was followed by a threat to impose the same rate on Canadian cars, trucks, parts, and steel, which are crucial for US industries.
Separately, on Monday, US Treasury Secretary Scott Bessent issued a warning to Iran's trading partners, stating they could face exclusion from the US financial network. These actions are described as attempts to weaponise US economic power.
The US Treasury has also intervened to manage long-term bond rates, a move attributed to the rising costs of war, tariffs, and tax cuts. Tariffs imposed by the Trump administration in 2025 reportedly resulted in an average tax increase of $1,000 per US household.
More than a quarter of Canadian exports to the US are now subject to significant tariffs or threats of increased tariffs. Ottawa is expected to retaliate in September.