Trump Slaps Canada with 35% Tariff—Trade War Fears Escalate

Brace for impact—cross-border commerce just got pricier.

### The Protectionist Hammer Drops

No sugarcoating it: a 35% tariff on Canadian goods throws gasoline on simmering trade tensions. Supply chains will choke, consumers will pay, and Wall Street will somehow spin this as a 'buying opportunity.'

### Who Gets Hit Hardest?

Lumber? Maple syrup? Automotive parts? Bet on all three—plus every small business that relied on frictionless trade. Meanwhile, lobbyists are already drafting loophole proposals in champagne-filled boardrooms.

### The Crypto Angle

Watch for capital flight into decentralized assets as traditional markets wobble. Nothing makes Bitcoin look stable like politicians playing economic Jenga.

Closing thought: If tariffs were effective, we’d all be paying them in gold-backed USD by now.

Trump expands tariff threat globally

The hard line Trump’s taking on Canada is only one element in a bigger tariff strategy. In an interview with NBC News on Thursday, Trump said that all countries that have not been formally informed of new rates for certain tariffs would face a blanket range of tariffs from 15% to 20%.

“We’re just going to say all the remaining countries will pay, whether 20 percent or 15 percent. We’ll work that out now,” Trump said on NBC.

Trump has also imposed a 50% tariff on Brazilian copper, set to take effect on August 1, 2025, citing the results of a national security review. He announced his Truth Social platform, referencing an ongoing “Section 232” investigation into the metal’s impact on US security.

The statement forewarns a return to a broad reimposition of trade barriers like his first administration. Throughout his presidency, Trump imposed tariffs to gain leverage in trade wars, even using economic muscle on traditional partners.

Though some critics viewed the strategy as an economic gamble and a blow to American diplomacy, Trump defended it, saying the tariffs had been effective. He claimed the tariffs have done great, and added that the stock market had reached a new high, though he did not specify which sectors had benefited.

Traders respond to tariff shock, sell the Canadian dollar

Financial markets also reacted swiftly to the news. After the announcement, the Canadian dollar was down about 0.3% against its US counterpart. Investors are also pricing in the risk of disruptions to cross-border trade and uncertainty over future US trade policy.

The strains on Canada’s largest stock market were apparent early Friday, when shares in the relatively export-dependent automaking and raw-materials sectors plunged. Analysts cautioned that an extended trade standoff could hurt businesses on both sides of the border, Canada and the United States.

No official response from the Canadian government was available on Friday morning. However, political observers predict a swift and harsh response from Prime Minister Justin Trudeau’s government.

Canada has already used retaliatory tariffs on US goods and brought complaints to the World Trade Organization in previous exchanges with the Trump administration. Many expect such measures to be taken again.

If enacted, the 35% would radically reshape the North American trade picture and create major uncertainty for companies, workers, and ordinary citizens.

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