The Dow Jones (DJIA) is set to open the Friday trading session in the red after President Trump announced a 35% tariff on imported goods from Canada through a letter to Canadian Prime Minister Mark Carney. The tariff will take effect on August 1 and is up from Canada’s initial 25% rate.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” said Trump. “These Tariffs may be modified, upward or downward, depending on our relationship with your Country.” Trump added that goods transshipped through Canada would be subject to a higher tariff rate.
Carney Responds to Trump’s New Tariff Rate
In an X post, Carney said that Canada has “steadfastly defended our workers and businesses” and will continue to do so as the August 1 deadline approaches. Carney also said that Canada will continue its efforts to curb the flow of fentanyl while strengthening its trade relationships with nations across the world.
In another blow to global trade, Trump is considering lifting the U.S. blanket tariff rate to 15% or 20%, up from 10%.
The Dow Jones ETF (DIA) is down by 0.63% at the time of writing.
