President Donald Trump late Thursday threatened to impose a 35% tariff on Canadian imports starting Aug. 1 if Ottawa doesn't accede to his trade demands, and kept the door open on a blanket import tax on the rest of the world.
It was the latest missive in a week full of tariff saber-rattling. Stocks fell on the latest trade tensions
Celal Gunes/Anadolu via Getty Images
President Donald Trump late Thursday threatened to impose a 35% tariff on Canadian imports starting Aug. 1 if Ottawa doesn't accede to his trade demands, and kept the door open on a blanket import tax on the rest of the world.
The president posted a letter addressed to Canadian Prime Minister Mark Carney on social media. It was the latest missive in this week's tariff saber-rattling, during which over two dozen U.S. trading partners including Brazil were put on notice about future import taxes.
"Instead of working with the United States, Canada retaliated with its own Tariffs," the president wrote in the letter shared on Truth Social. "Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs."
The U.S. currently has a patchwork of tariffs on Canada, one of its largest trading partners. Canadian energy exports face a 10% tariff, while other exports not covered by an earlier U.S.-Mexico-Canada trade agreement are subject to a 25% tariff.
Stocks fell on the latest trade tensions. Dow Jones Industrial Average futures dropped 315 points early Friday, or 0.7%. The S&P also slumped about 0.7%, and the Nasdaq $NDAQ slipped 0.6%.
Negotiations between Canada and the U.S. on a trade accord are ongoing with a July 21 deadline to clinch a deal, but Trump's letter could jeopardize those talks. The talks are proceeding on a separate track after Canada rescinded its plan for a digital service tax on U.S. tech companies. Trump had assailed the tax as "a direct and blatant attack" on the U.S.
Now Trump is escalating his tariff campaign after a week in which no new trade deals were announced. He mused about dialing up a 10% tariff that currently affects every country.
"We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump said in an interview with NBC News.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.