President Donald Trump has announced a 35% tariff on most Canadian imports, effective August 1.
This move intensifies trade disputes with Canada, America’s second-largest trading partner.
The decision follows tariff letters sent to over 20 countries this week, reflecting Trump’s aggressive trade policy.
Canada recently withdrew a proposed digital services tax that would have impacted U.S. tech giants.
The new 35% tariff, up from 25% imposed in March, targets Canadian exports like oil, cars, and machinery.
Canada exported $412.7 billion in goods to the U.S. in 2024, while importing $349.4 billion.
Trump cites curbing fentanyl smuggling and addressing the $63.3 billion U.S. trade deficit as reasons.
Canadian data shows less than 0.1% of U.S. fentanyl seizures from 2022-2024 were at the Canadian border.
Canadian Prime Minister Mark Carney has emphasized efforts to combat fentanyl and diversify trade.
The tariff escalation threatens the U.S.-Mexico-Canada Agreement, strained since Trump’s return to office.
The S&P 500 hit record highs, but early Friday stock futures dipped, signaling investor concerns.
Analysts suggest Trump may soften his stance, citing his history of retreating from trade threats.