Trump Announces 35% Tariffs on Canadian Goods from August

President Donald Trump announced a tariff increase on Canadian goods from 25% to 35%, effective August 1, citing Canada's failure to curb fentanyl trafficking and various trade barriers as reasons for the hike. Trump warned that tariffs could be adjusted further based on Canada’s cooperation and retaliatory actions. The move escalates tensions between the U.S. and Canada, America's second-largest trading partner, and risks increasing costs for American consumers, particularly in fuel and groceries, as Canadian oil and goods face higher import taxes. Canadian Prime Minister Mark Carney responded by reaffirming Canada's commitment to protecting workers and businesses while continuing trade negotiations with the U.S. Despite the tariff increases, Canada has made efforts to combat fentanyl flow, though Trump remains critical of their progress. The tariff changes follow previous sectoral tariffs on steel, copper, and aluminum, intensifying concerns about the broader economic impact and market volatility.