Trump Slaps 35% Tariff on All Canadian Imports, Raising Stakes in Trade Dispute

U.S. President Donald Trump has escalated his tariff crusade by announcing a blanket 35 percent duty on every product entering from Canada, effective August 1. In a letter posted to his Truth Social account, Trump warned that any Canadian counter-measures would trigger “like-for-like” increases, framing the move as leverage in ongoing talks over a new security-trade pact.

Wall Street reacted swiftly: the S&P 500 slipped nearly one percent, while the Canadian dollar fell to a six-month low. Auto stocks were hit hardest, with Toyota and Honda each down more than three percent on fears of higher North American supply-chain costs. Analysts say the levy could add up to US$28 billion in annual duties and raise consumer prices on everything from lumber to maple syrup.

Prime Minister Mark Carney called the action “economically reckless” but said Ottawa will keep negotiating until the July 21 deadline for a broader deal. Canada is drafting a proportional response that could target U.S. steel, aluminum and agricultural exports, while also accelerating trade-diversification talks with the EU and Pacific partners.