Trump Imposes 35% Tariff on Canadian Imports

President Donald Trump has announced a 35% tariff on Canadian imports, set to take effect on August 1, 2025, citing concerns over fentanyl smuggling and trade imbalances. Canadian Prime Minister Mark Carney has vowed strong retaliation, escalating trade tensions between the U.S. and Canada. The new tariff follows earlier 25% tariffs and is part of a wider effort by the Trump administration to increase tariffs on multiple trading partners, including consideration of a 15-20% blanket tariff on additional countries and a proposed 200% tariff on pharmaceuticals. The announcement has unsettled financial markets, leading to higher U.S. Treasury yields and increased gold prices. Canada, already affected by previous tariffs on steel, aluminum, and autos, is seeking stronger trade ties with Europe and the UK. The escalating dispute signals the risk of a full-blown trade war in North America, with significant global economic implications.