U.S. President Trump threatens steep duties amid mounting trade tensions.
President Donald Trump issued a fresh threat on July 11, announcing plans for a 35 percent tariff on Canadian imports not covered under the USMCA agreement, marking an escalation in his administration’s aggressive trade posture . The announcement rattled markets, sending the Canadian dollar to a two-week low and raising global economic alarm .
Analysts warn that extending tariffs to other partners, including Brazil and the EU, could spark a full-scale trade war, disrupting supply chains for commodities like coffee and copper . In turn, U.S. futures slipped as investors considered knock-on effects for inflation and growth.
In Washington, Republican senators mulled response strategies while trade-focused lobbies from both sides urged caution. Meanwhile, Canadian officials have begun drafting retaliatory measures aimed at key U.S. sectors such as agriculture and automotive.
The move reflects Trump’s broader strategy ahead of 2026 midterms, using protectionist rhetoric to engage his base. However, it also risks alienating allies and unsettling markets. Economic observers state the situation “remains fluid” as negotiations intensify.
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