United States President Trump hit dozens of countries around the world with his latest round of tariffs on Wednesday but spared Canada and Mexico. Did he really?

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The announcement impacted the markets globally and risks sparking a trade war. While speaking in the White House Rose Garden, Trump slapped the most stinging tariffs, including 34 per cent on goods from China, 20 per cent on the European Union and 24 per cent on Japan. He called it "Liberation Day". 

"For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," Trump said. 

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When Trump was announcing, Mexico and Canada were two surprising omissions. But the White House said that missing names doesn't mean that both American neighbours were left unscathed as pre-existing 25% tariffs on most Mexican and Canadian goods will remain. The new levies that touch the automotive sector come into force on Thursday. 

Trump ordered levies on both on the grounds that they had failed to stop the flow of the deadly opioid fentanyl into the US. According to the White House, the newly announced tariffs will not apply to Canada and Mexico due to standing orders under the International Emergency Economic Powers Act (IEEPA) related to fentanyl and migration. 

"For Canada and Mexico, the existing fentanyl/migration IEEPA orders remain in effect, and are unaffected by this order," the White House release said.

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White House further noted that as a result of the order, USMCA-compliant goods from both nations will remain exempt, while non-compliant goods will face a 25% tariff. Additionally, non-compliant energy and potash imports will be taxed at 10%. A 12% tariff would apply to non-compliant goods if the IEEPA orders are lifted. 

"This means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff," the release added. 

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Canadian Prime Minister Mark Carney told reporters in Ottawa: "We are going to fight these tariffs with counter-measures. We are going to protect our workers." 

Meanwhile, Mexican President Claudia Sheinbaum hasn't responded yet. 

US Senate votes to block Trump tariffs on Canada

A handful of Senate Republicans broke ranks with Trump on Wednesday, as they joined Democrats to pass a measure that would block his tariffs on Canadian imports. The resolution, supported by four Republicans and all of the chamber's Democrats, has virtually no chance of becoming law.

The four Republican senators who voted were: Lisa Murkowski of Alaska and Susan Collins of Maine as well as Kentucky's two senators, Mitch McConnell and Rand Paul. 

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It's a rare defeat for Trump on Capitol Hill, where his Republican Party controls both chambers and he has seen little pushback to his rampaging first months in office. Republicans have a 53-47 majority in the Senate.

The Senate voted 51-48 to overturn the national emergency at the border which Trump declared earlier this year, which he has used to justify saddling Canadian imports with 25 percent tariffs.  

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(With inputs from agencies)