U.S. President Donald Trump has declared that starting August 1, the United States will impose a 35% tariff on goods imported from Canada — a dramatic escalation that threatens to upend trade relations between the two closely intertwined North American economies.

In a letter released Thursday evening, Trump stated that the new tariffs would apply broadly to Canadian goods. While he did not provide a detailed list, experts believe the tariffs will most likely impact key sectors such as automobiles, steel, lumber, and agriculture.

📉 A Break from Decades of Trade Partnership

This decision marks a stark departure from decades of close cooperation between the U.S. and Canada. The two countries trade more than $2 billion worth of goods and services daily, with deeply integrated supply chains spanning energy, manufacturing, and food industries.

Trump’s order included no exceptions or negotiation clauses, signaling a clear and direct confrontation.

Trump Expands Tariff Threats Globally

The tariff on Canada is just part of Trump’s broader trade offensive. In a Thursday interview with NBC News, he said that countries not formally notified of specific tariff rates would face a default range of 15% to 20%.

💬 “We’ll say all remaining countries pay either 20% or 15%. We’ll sort that out,” Trump said.

He also announced a 50% tariff on Brazilian copper, citing national security concerns under Section 232, part of a broader review of key imports’ effects on U.S. interests.

This move revives Trump’s earlier strategy of using tariffs as leverage in trade wars — not just with rivals but also with traditional allies.

Markets React: Pressure Builds on Canada

Financial markets responded swiftly. The Canadian dollar fell approximately 0.3% against the U.S. dollar after the announcement. Early Friday trading on the Toronto Stock Exchange saw steep drops in stocks from export-heavy sectors like auto and raw materials.

📉 Analysts warned that prolonged trade tensions could seriously disrupt business operations and employment on both sides of the border.

There has been no official response yet from the Canadian government, but political observers expect a strong reaction from Prime Minister Justin Trudeau. In past disputes, Canada has responded with retaliatory tariffs and WTO complaints — and many believe similar measures are imminent.

A 35% Tariff Could Reshape North American Trade

If enacted, the 35% tariff would radically alter the trade landscape across North America. Companies, workers, and consumers would all be affected, with deep uncertainty about future business decisions.

Despite criticism, Trump continues to defend his trade policy, claiming tariffs "work" and have benefited the U.S. economy. However, it remains to be seen whether this aggressive strategy will deliver long-term gains — or simply strain historic alliances.



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