Overview

• President Trump signed an executive order on August 1 increasing tariffs on Canadian imports from 25% to 35% to pressure Ottawa over fentanyl smuggling.
• He issued a separate order adjusting reciprocal tariff rates for other trading partners to address U.S. trade deficits and national security concerns.
• Democratic Sen. John Fetterman broke with his party by declaring the administration’s trade measures “going well,” citing recent agreements with the European Union and Japan.
• Critics including Sen. Jack Reed warn that sustained tariff hikes will drive consumer price increases and disrupt supply chains, potentially postponing Federal Reserve rate cuts.
• The U.S. struck deals with the EU and Japan that lock in 15% baseline tariffs in exchange for $750 billion in EU energy purchases, $600 billion in EU investments, and $550 billion in Japanese industrial investments.