Trump sets new tariffs on trading partners, covering nearly all U.S. imports

President Donald Trump:

We put the tariffs on. They're very standard tariffs. The other way was easier. I thought the decision by the Supreme Court was not a good one. But we have many forms of tariffs.

Amna Nawaz:

Liz Landers takes a look at this latest turn of events.

Liz Landers:

Amna, the administration says these new tariffs target countries that import goods using forced labor. That characterization quickly drew objections from several allies and trading partners, who called it unjustified.

It all comes after the president announced new 50 percent tariffs on a slew of Canadian products set to go into effect in mid-August.

For more, we're joined by Chrystia Freeland. She's the former deputy prime minister and finance minister of Canada, serving under Justin Trudeau and Mark Carney.

So we're going to get to the relationship between your country and the United States here in a second. But I just want to get your initial reaction to this new round of tariffs and the administration's justification for them.

Chrystia Freeland, Former Canadian Deputy Prime Minister:

This for me, Liz, I have to say, is a really sad moment.

It's a sad moment in history. It's a sad moment in America's relationships with its closest allies, because what we are seeing is the United States beating up more fiercely on its allies, on its close friends, than it is on the countries to which it is antagonistic.

And it may feel good for some people in the short term, but I hope that Americans will recognize that your country is going to be weaker in the medium and long term if your country continues to treat countries that have been your allies over decades so terribly. That's what I think is happening.

Liz Landers:

The U.S. trade representative, Jamieson Greer, told Congress earlier this week of these tariffs -- quote -- "The specific authorities this administration is using have changed, but the trade strategy has not."

What has been the impact of this trade strategy? And what do you expect will be the impact of these tariffs going forward?

Chrystia Freeland:

So, economically, the trade strategy is making everybody poorer, because trade actually works. It makes us richer. That's why we do it.

It also is a tax on American consumers. And it is one of the things that is driving inflation. Inflation is still high in the United States, and these policies are keeping it there. But I think the other thing that is really important to bear in mind when we're looking at these tariffs is, this is not what President Trump campaigned on.

It's not what he campaigned on in 2016. It's not what he campaigned on in 2024. What is going on here is, frankly, a very obvious search for any pretext possible to impose tariffs on the world and to impose tariffs with particular vigor, paradoxically, against America's allies.

I think that, if this administration wanted to be serious about saying, we're really worried about forced labor, we're really worried about the role that China is playing in the world and how China is treating its own people and the impact that is happening on the global economy, I think the U.S. that wanted to lead a coalition doing that could be very successful.

But that's not what -- that is not what is happening right now.

Liz Landers:

As we were talking about, the president announced new 50 percent tariffs on a wide array of Canadian goods. He said that they were in response to -- quote -- "Canada's discriminatory treatment of American products."

What is your response to the idea or to this allegation that Canada is engaging in unfair trade practices? How significant is this standoff between these two allies?

Chrystia Freeland:

The U.S. action is significant. It covers around $20 billion worth of trade. It's a big breach.

It comes after a series of U.S. actions since the reelection of President Trump that have been designed to hurt Canada. Tariffs were imposed on Canadian steel, aluminum cars, and car parts last year. Those are still in place. This comes on top of those.

Liz Landers:

You were Canada's lead negotiator during Trump's first presidency when Canada, the United States, and Mexico were negotiating the USMCA, that trade deal between the countries. What did you learn from that experience?

Chrystia Freeland:

I learned that, at the end of the day, you can get a win-win outcome even with the Trump administration.

And the reason that was possible is the relationship, including the economic relationship between Canada and the United States, is a really good one. It's mutually beneficial. And at the end of the day, that recognition prevailed.

Two things really helped. One was that we took the case outside the White House. And we had huge numbers of Americans, whether they were congressmen and senators and governors to just regular people whose jobs and whose companies depended on trade with Canada speaking out and saying, why are we breaking up a good thing?

That was really important. The other thing that was important was, I really think, with President Trump, the only thing he understands is strength. And it's a really hard thing for a country to choose to retaliate with tariffs. It's difficult. It's painful. In some ways, it's kind of a dumb thing to do, because it makes your own country poorer.

But I think the only way to get a good deal with President Trump is, if he hits you, your country has to be prepared to retaliate. We have seen that China has managed to get a strong relationship with the president, and I think they have done that by being strong. I think that's what America's allies need to do too.

Liz Landers:

What do you think is the future of free trade in North America?

Chrystia Freeland:

Well, I hope that we continue to have a strong trade deal on our continent and a strong trade deal between Canada and the United States.

If the United States chooses not to have that kind of a relationship, Canada will survive, but it will make all of us poorer. And regular Americans will face higher prices. They will face inflation. They will be a little bit less well off, and really for no reason, because, look, Canada is amazing. We're a great country.

I don't think Americans see us as a national security threat. And that's the justification for some of these tariffs.

Liz Landers:

Thank you for joining the "News Hour."

Amna Nawaz:

And a note that we did invite the U.S. trade representative, Jamieson Greer, to join us on the "News Hour" this week. The administration declined.