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US hikes tariffs on Canada; State department to issue layoffs amid Trump’s government cuts

Updated on: 12 July,2025 08:15 AM IST  |  Washington
Agencies |

The US State Department will begin issuing layoff notices as part of a major reorganisation led by the Department of Government Efficiency under Trump’s directive. Meanwhile, Trump announced a 35 per cent tariff on Canadian imports starting August 1, intensifying tensions over fentanyl concerns and trade policies.

US hikes tariffs on Canada; State department to issue layoffs amid Trump’s government cuts

A protest outside the Federal Building on Thursday, in New York City. Pic/AFP

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The State Department formally advised staffers on Thursday that it would be sending layoff notices to some of them soon, coming as part of dramatic changes to the agency that the Trump administration announced earlier this year. The workforce cuts and reorganisation of the country’s diplomatic corps are part of a wider administration effort to reduce the size of the federal government that has been largely carried out by the Department of Government Efficiency (DOGE), formerly led by Elon Musk.

A recent ruling by the Supreme Court cleared the way for the layoffs to start, while lawsuits challenging the legality of the cuts continue to play out. Michael Rigas, the department’s deputy secretary for management and resources, said in a statement that select staffers would be informed if they were being laid off and called it part of the department’s biggest reorganisation in decades.


Rigas’s statement said the department is aiming to “focus resources on policy priorities and eliminate redundant functions, empowering our people while increasing accountability.” Critics say the scale of cuts floated will lessen US influence globally and make it hard for many departments to carry out their missions.



Canada likely to face 35% US tariffs

US President Donald Trump said in a Thursday letter that he will raise taxes on imported goods from Canada to 35 per cent, deepening a rift between two countries. The letter to Canadian Prime Minister Mark Carney is an aggressive increase to the 25 per cent tariff first announced by Trump in February, allegedly in an effort to get Canada to crackdown on fentanyl smuggling despite the relatively modest trafficking in the drug. Higher rates would go into effect on August 1.

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