Trump follows through on 35% tariff plan for Canada

[USA Canada Trade War]

President Donald Trump signed an executive order increasing the tariff on Canada from 25% to 35%, with the higher tariff set to go into effect on August 1, 2025.

The White House fact sheet on the Canada tariffs cites “fentanyl and illicit drugs flowing across the northern border” into the U.S. and Canada’s trade retaliation against the U.S.

Since the start of October, U.S. Customs and Border Protection has reportedly seized 74 pounds of fentanyl at the Canadian border and 8,800 pounds at the Mexican border.

“Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President’s actions to address this unusual and extraordinary threat to the United States. In response to Canada’s continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25% to 35% to effectively address the existing emergency,” the fact sheet read.

Goods that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA) remain exempt from the IEEPA Canada tariffs. Goods transshipped to circumvent the 35% tariff will instead be subject to a 40% transshipment tariff.

In an interview with _NBC News_, Trump signaled openness to further talks with Canada and said he might speak with Prime Minister Mark Carney later Thursday night, U.S. time.

Here is a list of ETFs to track the broader U.S. market: (NYSEARCA:SPY [https://seekingalpha.com/symbol/SPY]), (NYSEARCA:VOO [https://seekingalpha.com/symbol/VOO]), (NYSEARCA:IVV [https://seekingalpha.com/symbol/IVV]), (NYSEARCA:RSP [https://seekingalpha.com/symbol/RSP]), (NYSEARCA:SSO [https://seekingalpha.com/symbol/SSO]), (NYSEARCA:UPRO [https://seekingalpha.com/symbol/UPRO]), (NYSEARCA:SH [https://seekingalpha.com/symbol/SH]), (NYSEARCA:SDS [https://seekingalpha.com/symbol/SDS]), and (NYSEARCA:SPXU [https://seekingalpha.com/symbol/SPXU]).

And here are ETFs to track Canadian market: (BATS:BBCA [https://seekingalpha.com/symbol/BBCA]), (NYSEARCA:EWC [https://seekingalpha.com/symbol/EWC]), (NYSEARCA:FLCA [https://seekingalpha.com/symbol/FLCA]), (NYSEARCA:FXC [https://seekingalpha.com/symbol/FXC]).

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