US ends ‘de minimus' tariff exemption for all low-value packages
Under an executive order signed by U.S. President Donald Trump on Wednesday, packages valued at or under US$800 sent to the U.S. outside of the international postal network will now face 'all applicable duties' starting August 29, the White House said.
Trump earlier targeted packages from China and Hong Kong, and the White House said the recently signed tax and spending bill repealed the legal basis for the de minimis exemption worldwide starting on July 1, 2027.
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Carney says U.S. trade talks at 'intense phase,' as deadline looms
'Trump is acting more quickly to suspend the de minimis exemption than the OBBBA requires, to deal with national emergencies and save American lives and businesses now,' the White House said in a fact sheet, referring to the bill known as the One Big Beautiful Bill Act.
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Goods shipped through the postal system will face one of two tariffs: either an 'ad valorem duty' equal to the effective tariff rate of the package's country of origin or, for six months, a specific tariff of $80 to $200 depending on the country of origin's tariff rate.
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Globe and Mail
30 minutes ago
- Globe and Mail
The Latest: US trade partners around the world react to Trump's new tariffs
U.S. trade partners reacted Friday to President Donald Trump's executive order that would introduce new tariffs on many of them in seven days, as the global economy and alliances face another test from the president's trade agenda. Trump's order issued Thursday night came after a flurry of tariff-related activity in recent days as the White House announced agreements with various nations and blocs before a deadline set by the president for Aug. 1. Trump ordered a 35% tariff for goods from Canada, effective from Friday, citing a lack of cooperation on illicit drugs. He also said Thursday that he would extend trade negotiations with Mexico for 90 days. Here's the latest: Thailand says 19% rate reflects 'close partnership' with US Thailand's finance minister says the 19% tariff rate imposed by the U.S. 'reflects the strong friendship and close partnership' between the two countries. Thailand's new rate of 19% was reduced from 36%, similar to other rates imposed on Southeast Asian nations, such as Vietnam, Cambodia and the Philippines. Finance Minister Pichai Chunhavajira wrote in a social media post on Friday that it would 'maintain Thailand's competitiveness on the global stage' and opens the 'door to economic growth,' but also acknowledged it would pose problems for some sectors of the economy and said that 'comprehensive support measures have been prepared." Speaking to reporters at a news conference in Bangkok later Friday, Pichai said that the deal will still need more time to be hammered out in details. Pakistan welcomes 19% tariffs under US trade deal Pakistan on Friday welcomed a new tariff arrangement with the United States that sets a 19% duty on Pakistani exports, calling it a positive step that could boost trade and economic growth. The new rate is lower than the 29% tariff initially announced by U.S. President Donald Trump and below the 25% currently imposed on neighboring India. The Finance Ministry said the agreement reflects a 'balanced and forward-looking approach' by U.S. authorities and will help keep Pakistani goods competitive in the American market compared to other South and Southeast Asian countries. The ministry said the revised tariff is expected to benefit key export sectors, particularly textiles, which remain the backbone of Pakistan's export economy. The ministry said that Pakistan will continue to engage closely with Trump and the U.S. administration to promote the shared goals of economic development and mutual prosperity. Norway wants 'zero tariffs' Norwegian Prime Minister Jonas Gahr Støre told newspaper VG that he believes the Scandinavian country should have 'zero tariffs.' Gahr Støre, following the White House's announcement, said Norwegian officials are still in talks with Washington in the hopes of eliminating the duties altogether. Norway got hit with an expected 15% tariff. Switzerland hit with 39% tariff and will try to negotiate The land of luxury watches, pharmaceuticals and secretive financial services was reeling Friday, Switzerland's National Day, upon learning it had been slapped with a 39% tariff, although U.S. President Donald Trump had proposed a 31% rate in April. The Swiss government said officials will continue to seek a negotiated solution. 'The Federal Council notes with great regret that, despite the progress made in bilateral talks and Switzerland's very constructive stance from the outset, the US intends to impose unilateral additional tariffs on imports from Switzerland,' the government said in a post on X. Trump orders 35% tariff on Canadian goods U.S. President Donald Trump has raised the tariff rate on U.S. imports from Canada to 35% from 25%, effective Friday, citing a lack of cooperation on illicit drugs. The announcement from the White House late Thursday said that Canada had failed 'to do more to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug or human traffickers, criminals at large, and illicit drugs." Trump earlier had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries. Canada wasn't included in Trump's updated list of tariff rates on other countries announced late Thursday. Those import duties are due to take effect on Aug. 7. Malaysia hails 'significant achievement' in 19% tariff rate Malaysia's Trade Ministry said Friday that the U.S. tariff reduction from 25% to 19% was a 'significant achievement' as the deal was struck without compromising key national interests. 'The 19% rate roughly tracks the rate of other countries in the Southeast Asian region,' the ministry said in a statement. 'Most importantly, Malaysia had stood firm on various 'red line' items, and the 19% tariff rate was achieved without compromising the nation's sovereign right to implement key policies to support the nation's socio-economic stability and growth.' The ministry said that Malaysia's economy remains resilient despite global headwinds, citing strong domestic demand and ongoing structural reforms. The statement didn't give further details, but officials previously said that nontariff barriers such as halal certification, which affects U.S. beef and poultry exports, along with digital trade and government procurement were sticking points. It's unclear what concessions Malaysia made. Cambodia will impose zero tariffs on all American goods Cambodia's deputy prime minister, who led trade talks with the U.S., thanked U.S. President Donald Trump for setting the tariff rate on Cambodian goods at 19% and said the government would impose zero tariffs on all American goods. When Washington originally posted its list of notional 'reciprocal' tariffs, the rate for goods from Cambodia was 49%, one of the highest in the world. It had estimated that Cambodian tariffs on U.S. imports averaged 97%. Deputy Prime Minister Sun Chanthol also said Cambodia would purchase 10 passenger aircraft from Boeing in a deal they hoped to sign later this month. Several other nations had already announced similar aircraft purchase deals as part of their trade packages. Trump had threatened to not conclude a deal with reduced tariffs if Cambodia and Thailand didn't stop a recent armed conflict over border territory. The two nations agreed on a ceasefire beginning Tuesday that appears to be holding. Cambodia publicly celebrated Trump's peace initiative, suggesting he deserved a Nobel Prize for his intervention. Sun Chanthol said Friday that Cambodia would nominate him for the honor. Australia says 10% rate gives country competitive advantage Australian Trade Minister Don Farrell says gaining the minimum 10% U.S. tariff on exports including beef, lamb, wine and wheat gave Australia a competitive advantage over some competitors. Farrell told reporters Australia did not introduce tariffs on U.S. goods at any point, and added, 'I haven't seen any case or any example where the retaliatory imposition of tariffs has resulted in a country being in a better position." Farrell argues that no U.S. tariffs can be justified because Australia imposes no tariffs on its bilateral free trade partner. The United States has enjoyed a trade surplus with Australia for decades. Australian Prime Minister Anthony Albanese has been criticized for failing to secure a face-to-face meeting with U.S. President Donald Trump to discuss trade. Japan welcomes Trump's signing of executive order Japanese Chief Cabinet Secretary Yoshimasa Hayashi welcomed U.S. President Donald Trump's signing of the executive order setting Japan's new reciprocal tariffs as a step that would reduce uncertainty of the U.S. trade policy and its negative impact on the global economy, including that of Japan. Hayashi, however, said Japan still needs to closely examine the measures and continue urging prompt implementation by the U.S. government to carry out the agreement, including reduction of tariffs on automobiles and auto parts. Hayashi acknowledged that Japan's new tariff rate of 15% is a 'major reduction' from the initially imposed 25%, but his government will continue to watch and mitigate its impact on Japanese exports, including by providing financial assistance for small and medium-sized businesses. New Zealand looks to lobby for lower tariff rates New Zealand officials said they would lobby the administration for a change to the 15% tariff announced for the country's exporters to the U.S. It's an increase from the original 10% baseline announced for New Zealand in April. 'We don't think this is a good thing. We don't think it's warranted,' Trade Minister Todd McClay told Radio New Zealand Friday. He said New Zealand appeared to have been targeted for a larger levy because the country sells more to the U.S. than it imports, but that the gap of about half a billion dollars each year was 'not significant or meaningful.' Neighboring Australia dodged an increase to remain at 10%, but it buys more from the U.S. than it exports, McClay added. The United States in January overtook Australia to become New Zealand's second-largest export partner, behind China. New Zealand exports are largely made up of meat, dairy, wine and agricultural machinery. Taiwan president says final tariff negotiations yet to come Taiwan President Lai Ching-te said Taiwan had yet to engage in final negotiations with the U.S. owing to scheduling difficulties and that he was hopeful the final tariff rate would be reduced even further after a final round of talks. The Trump administration hit Taiwan with 32% tariffs, and lowered it to 20% on Thursday. Taiwan was notified on Thursday by the administration of the lower rate. 'Twenty percent from the beginning has not been our goal. We hope that in further negotiations we will get a more beneficial and more reasonable tax rate,' he told reporters in Taipei on Friday. Lai also linked trade talks to security issues, as the U.S. is Taiwan's largest ally even though it does not formally recognize the island. 'We want to strengthen U.S. Taiwan cooperation in national security, tech, and multiple areas,' he said Friday. The U.S. is Taiwan's most important export market and strategic ally, Lai said in an earlier statement Friday morning. Cambodia prime minister thanks Trump for dropping tariff rate Cambodian Prime Minister Hun Manet expressed his thanks to U.S. President Donald Trump for the dropping of tariffs from 36% to 19% and he called the reduction 'good news' for Cambodia. Posted on his social media platform, Hun Manet said Trump hadn't only helped broker a ceasefire between Cambodia and Thailand forces after nearly a weeklong clash, but also assisted Cambodia's economy by lowering tariffs. 'This is good news for the people and economy of Cambodia to continue developing the country,' Hun Manet said. Thailand successfully negotiates lower tariff rates Thailand's government spokesperson Jirayu Houngsub said Thailand says the U.S. agreed to reduce the tariffs rate from 36% to 19%, a rate similar to those imposed on many other Southeast Asian countries such as Vietnam and the Philippines. 'It's one of the major successes of Team Thailand in a win-win approach, to secure the country's export base and economic security in a long run,' he said in a statement. He didn't immediately say what was the latest offer Thailand made to the U.S. The agreement came days after a ceasefire between Thailand and Cambodia to halt the nearly weeklong clashes that killed at least 41 people. It was brokered with U.S. pressure as President Donald Trump said he wouldn't move forward with trade agreements if the conflict continued.
National Post
30 minutes ago
- National Post
Amy Hamm: On Feucht and Hockey Canada ruling, ignore the angry mobs
Article content This case does not make a strong hill for the 'believe all women' mob to die on. But then again, mobs seldom make sense. They tend to be driven by emotion, not logic. Article content A mob is, at least superficially, motivated by the desire to rectify injustices, stop wrongdoing or protect the vulnerable and innocent. But the examples provided to us by history reveal how angry mobs rarely get things right, and often fail to accomplish justice. They also, naturally, form within a specific cultural context. Article content An illustration: the Salem Witch Trials. Between 1692 and 1693 in Massachusetts, more than 200 mostly female victims were accused by the mob of being witches. Twenty were put to death. Public officials performed the bidding of persons blinded by misogynist, religiously motivated fears. Due process was non-existent, and literal braying mobs influenced judges' verdicts. Article content Today's dominant (but admittedly receding) cultural orthodoxy is one of reactionary rage against all things white, western, colonial, conservative, traditional, religious and male. Article content Article content One look at Feucht, and the exonerated Team Canada players, and it becomes clear that at the centre of both of these very public controversies are persons who can be perfectly vilified within our cultural milieu. And they all have been. Article content Whatever our collective anger is over — Trump's tariffs, a recession or violence against women — Feucht et al. comprise the perfect target for the mob's rage. Article content Politicians, journalists and judges all have a duty to examine the claims of a mob before falling for its proclaimed narrative — and, more critically, before bending to the will of any irate, pitchfork-wielding folks. Article content One of Feucht's songs contains these lyrics: 'There is a name; Who reigns without contention; Whose power can't be questioned or contained; With humble fame; He rules the earth and heavens; His glory knows no measure or refrain; And it's bursting past the border lines of space.' Article content Article content Article content
CBC
30 minutes ago
- CBC
Could U.S. tariffs drive up drug prices? Manitoba bioscience group says it's complicated, but possible
Medicine manufacturers across Canada are on edge with the looming threat of catastrophic tariffs on pharmaceutical exports to the U.S., experts say. Earlier this month, U.S. President Donald Trump threatened to impose tariffs as high as 200 per cent on pharmaceuticals exported to the United States. Howard Lutnick, Trump's secretary of commerce, said details about the pharmaceutical tariffs would come at the end of July. The uncertainty this created is starting to reveal itself as stock prices of major pharmaceutical manufacturing companies with operations in Canada — companies like Emergent Biosolutions and Bausch Health — have declined in recent days. "If a 200 per cent tariff were to be put into place then I think [pharmaceutical manufacturers] would have to potentially reconsider whether it makes sense to manufacture in Canada," says Shawn Bugden, dean of the school of pharmacy at Memorial University. So what could the impact be in Canada? Given the tariff uncertainty, "it's intensely complicated," says Bugden. According to government data, the pharmaceutical industry in Canada represents two per cent of global market share, and the manufacturing portion of it alone consists of an average of 35,000 jobs since 2019. In Manitoba, medicine is one of the leading industries, accounting for between 30-35 per cent of the medicine manufactured in Canada, seven per cent of the province's GDP, and roughly 14,000 jobs, according to Andrea Ladouceur, president of the Bioscience Association of Manitoba. "The pharmaceutical industry is the cornerstone of the Manitoba economy," said Ladouceur. "If being in Canada becomes unaffordable for them, these companies are connected to the global market and moving out of Canada is not off the table." The danger of these companies leaving is multifaceted. Not only would there be the major economic impact of a shrinking key industry, but "we'd also lose the security of having some of the drug supply manufactured here in Canada," according to Bugden. The reliance on international trade for essential goods like medicines has proved risky in the past. During the COVID-19 pandemic, drug shortages in Canada were not uncommon. If pharmaceutical manufacturers move operations out of the country, it will likely make Canada even more reliant on global markets than they already are: with 70 per cent of drugs imported from foreign countries, 16 per cent of which is imported from the U.S., accounting for nearly $9 billion, according to Bugden. However, Budgen's main concern is that a sizable tariff, like the 200 per cent figure touted by Trump, would undermine Canada's price control mechanisms like the Patented Medicine Prices Review Board and the pan-Canadian Pharmaceutical Alliance — which he views as major assets to Canadians. The Patented Medicine Prices Review Board — established in 1987 but amended in 2019 — is meant to"ensure that the prices of patented medicines sold in Canada are not excessive." The board reviews the price of drugs and medicine and conducts hearings "which may result in orders to reduce prices to a non-excessive level," according to guidelines listed on their website. Bugden says that as an unintended consequence, implementing such a substantial tariff would likely raise the cost of manufacturing drugs and medicine globally, in turn applying pressure on the review board to "break their own rules and allow for higher-priced drugs." "The Americans have been transparent, they say they have the highest drug prices in the world, we want to lower them, but we're not going to lower them, which is what they should do and they have the ability to do, we're instead going to try and make everybody else pay higher prices so that it allows our prices to go down," said Bugden. As things stand, many pharmaceutical companies are waiting to see what will happen. CBC News has reached out to several pharmaceutical companies in Manitoba, but none have wanted to comment given the uncertainty of the situation they're facing. Ladouceur says they're fearful that tariffs may force them to increase their prices. "At the end of the day, any increase in cost will be passed on to the consumer," says Ladouceur. "And so for these companies it is a very hard spot because they know it may put them out of reach for the consumer, and having medicines are key to having a healthy life and sometimes save a life, so they are really concerned their products will become unaffordable for those that need them most." Trump has said that there would be a period — "a year, or a year and a half" after a tariff would be imposed for companies to "get their act together." In light of that, Bugden doesn't think the end consumer will be paying the price for at least a year. "I don't think consumers need to worry about the prices changing tomorrow," said Bugden. "Keep calm and carry on, don't think you need to run to the drug store and fill up your prescriptions." "I'm confident in the institutions we have in Canada to do the best job possible to maintain pricing and accessibility for Canadians," said Bugden.
