Tariffs test global alliances

US PRESIDENT Donald Trump unveiled new tariffs on Thursday on nearly 70 countries — including a blistering 35% on neighbor Canada — as he seeks to reshape global trade to benefit the US economy.

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However, in a minor reprieve that opens the door to further negotiations, the White House said the measures would take effect in a week for most countries.

The tariffs are a demonstration of raw economic power that Trump sees putting US exporters in a stronger position while encouraging domestic manufacturing by keeping out foreign imports. But the muscular approach has raised fears of inflation and other economic fallout in the world’s biggest economy.

Trump raised duties on nearly 70 economies, from a current 10% level imposed in April when he unleashed “reciprocal” tariffs citing unfair trade practices. The new, steeper levels listed in an executive order vary by trading partner and go as high as 41%.

Any goods “transshipped” through other jurisdictions to avoid US duties would be hit with an additional 40% tariff, the order said.

The American leader separately hiked tariffs on Canadian goods from 25% to 35% — starting on Friday.

He had warned of trade consequences for Canada after Prime Minister Mark Carney announced plans to recognise a Palestinian state at the UN General Assembly in September.

Trump's order cited Canada’s failure to “cooperate in curbing the ongoing flood of fentanyl and other illicit drugs” as well as its “retaliation” against his measures.