Trump Prepares New Economic Pressure on Iran as US-Canada Tariff Fight Escalates

President Donald Trump is preparing what his administration is calling an unprecedented economic offensive against Iran, with Treasury Secretary Scott Bessent expected to announce new sanctions and other measures targeting Tehran and countries that continue doing business with Iran.

The economic campaign marks a new phase in the nearly six-month conflict, with the Trump administration seeking to increase pressure on Iran through financial restrictions and international economic isolation.

Bessent described the effort as an “economic D-Day” and called it the single greatest financial offensive against an adversary.

“This is going to be the greatest coordinated economic isolation in the history of the world,” Bessent said. “And we are going to them and saying you were either with us or against us.”

Top Republicans have backed the administration's approach, saying they believe US allies will participate in the effort.

China, however, has so far resisted the crackdown. China is Iran's biggest economic ally and has continued to call for diplomacy.

The developments come as the United States is also facing growing tensions with one of its closest allies, Canada.

At President Trump's direction, Canada has been hit with a 50% tariff on about $20 billion worth of US imports, affecting products ranging from dairy and clothing to building materials and hockey sticks.

Trump has repeatedly defended the use of tariffs as part of his economic strategy.

“I love tariffs. I love the word tariffs. It's made us rich as hell,” Trump said.

Canada's prime minister has pushed back, saying Canada will respond with new tariffs on American products, including US steel, dairy and electronics.

“Canada will match Washington's new tariffs, dollar for dollar,” the prime minister said.

The escalating trade dispute has also drawn concern from the US Chamber of Commerce, which warned that higher tariffs could damage both the US and Canadian economies while increasing costs for American families.

The developments leave the Trump administration pursuing economic pressure on multiple fronts, as it seeks to isolate Iran while also navigating an increasingly contentious trade relationship with Canada.