Friends with few trade benefits
Since January 2025, the Trump administration has imposed tariffs on nearly all trading partners under various legal authorities, raising the average US tariff rate from 2.2 percent to 9.9 percent. Free trade agreements have not prevented these additional tariffs, though the USMCA has largely shielded Canada and Mexico. In July, Trump announced 50 percent tariffs on roughly $20 billion in Canadian imports under Section 338, including goods imported under USMCA, and the US declined to renew the USMCA.
Why it matters: This matters for trade policy because it shows that free trade agreements no longer guarantee tariff certainty when the executive can impose additional tariffs.