The impact on effective tariff rates is expected to be moderate. BofA estimates these could rise to 4.2% for Canada and 6.9% for Mexico, up from 3.6% and 6.2%, respectively, due to the high share of USMCA-compliant goods in total trade flows.

OTTAWA--Canada introduced additional measures to help the domestic steel industry cope with 50% U.S. tariffs, including limits on how much foreign-made steel -- with the exception of the U.S. and Mexico -- can enter the country before facing hefty duties.

The Canadian prime minister said it may not be possible to escape U.S. tariffs even with a bilateral agreement to resolve the current tariff row.

Trump threatened to escalate tariffs beyond 35% if Canada opts to retaliate with tariffs on U.S. goods. Canadian goods are also subject to sector-specific tariffs, such as 50% levies on steel and aluminum as well as 25% tariffs on non-USMCA compliant autos and auto parts.

Slowing exports to China helped the deficit to balloon as the value of items shipped from Mexico to China declined for a second consecutive year.

President Donald Trump unveiled the new duty rates, set to begin Aug. 1, in separate letters shared on social media Saturday morning.

An Indian trade delegation has also reached Washington for fresh talks on a trade deal with the United States.

Live Updates Live Coverage Updates appear automatically as they are published. Rivian Run off Road 9:43 am Back to the bad news. Guggenheim analyst Ronald Jewsikow downgraded Rivian Automotive (Nasdaq: RIVN) to neutral this morning on “softer long-term R2/R3 assumptions driven by both softer R1 sales and negative US Electric Vehicle and Emissions policy changes.