Trump Imposes 35% Tariffs on Canada, Sparks Market Volatility

President TRUMP has escalated his trade war by imposing a 35% tariff on Canadian goods effective August 1, citing financial retaliation from Ottawa. The announcement triggered immediate market reactions, with S&P 500, Nasdaq, and Dow futures declining overnight. Investors are weighing potential retaliatory measures from Canada against the possibility of negotiated solutions.

The administration is simultaneously signaling broader trade restrictions, proposing blanket tariffs of 15-20% on most trading partners—a significant increase from current 10% levels. Market participants remain divided on whether these measures will stimulate the U.S. economy or create long-term headwinds.

Trump points to record highs in tech and industrial stocks as validation of his tariff strategy, claiming hundreds of billions in revenue generation. However, skepticism persists among financial leaders. JPMorgan CEO Jamie Dimon warns of market complacency regarding tariff risks, suggesting current valuations may not reflect potential trade war fallout.