President Donald Trump has dramatically altered US tariff rates, introducing a significant 40% duty on all goods deemed to be transshipped – goods that pass through multiple countries before reaching their final destination. This move, implemented shortly before a self-imposed deadline, targets what the administration views as a loophole exploited to circumvent existing tariffs. The new policy aims to curb illicit trade and protect American businesses, but critics argue it will further complicate international trade and potentially harm consumers through increased prices. The breadth of the new regulations, impacting an array of goods and originating countries, highlights the administration’s increasingly aggressive approach to trade negotiations.

Beyond the comprehensive transshipment tariff, the President also announced a range of other changes. Tariffs on Canadian goods have been raised to 35%, a move met with immediate condemnation from Ottawa. Dozens of other countries face varying tariff adjustments, ranging from 15% to 40%, depending on the product and the perceived level of unfair trade practices. While the White House insists these measures are necessary to level the playing field and protect US industries, many economists worry that the escalating tariff war will damage global economic growth and trigger retaliatory actions from other nations, potentially initiating a cycle of trade disputes with unpredictable consequences.