In a move that escalates trade tensions across North America, President Donald Trump announced a new 35% tariff on Canadian imports set to take effect on Aug. 1, citing long-standing grievances over drug trafficking and trade imbalances.
The surprise announcement, made via formal letters to Canadian officials late Thursday, significantly raises existing duties—many of which stood at 25%—and casts a shadow over one of the United States' closest economic partnerships. Goods covered under the U.S.–Mexico–Canada Agreement (USMCA) are currently exempt, though analysts warn that exemption could be short-lived.
