Trump Reignites Trade War With Canada via 35% Tariff, Markets React

The TRUMP administration has abruptly imposed a 35% tariff on select Canadian goods, marking a sharp reversal from recent diplomatic overtures at the G7 summit. Copper and automotive exports—products excluded from USMCA protections—bear the brunt of the measures. "If Canada cooperates to stop fentanyl, we will consider revising this decision," Trump stated, framing the tariffs as negotiable leverage.

Financial markets responded with textbook risk-off behavior: gold prices climbed as the Canadian dollar weakened against major currencies. US equity indices showed limited reaction, suggesting investors view this as a targeted skirmish rather than systemic risk. The MOVE exposes Canada's vulnerability as a trade-dependent economy now facing transcontinental escalation.