Fri Jul 11 01:19:50 UTC 2025: ## Trump Threatens Canada with Massive Tariff Hike, Escalating Trade War

**WASHINGTON – July 11, 2025** – In a move that further strains relations between the United States and Canada, President Donald Trump announced plans to increase tariffs on Canadian imports to a staggering 35%. The announcement, made in a letter to Canadian Prime Minister Mark Carney on Thursday, July 10th, threatens to destabilize the global economy and dismantle decades of close economic ties.

The increased tariffs, slated to take effect on August 1st, come on the heels of existing 25% tariffs implemented earlier this year, ostensibly in response to fentanyl smuggling from Canada, a claim disputed by many. In his letter, Trump cited broader trade imbalances and perceived unfair trade practices as further justification for the increase.

“I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers,” Trump wrote.

The move has been met with strong resistance from Canada. Prime Minister Carney, who campaigned on a platform of protecting Canadian interests, has sought to diversify Canada’s economic partnerships, strengthening ties with the European Union and the United Kingdom. Hours before Trump’s announcement, Carney tweeted a picture of himself with British Prime Minister Keir Starmer, implying a shift away from reliance on the increasingly unpredictable US.

Trump’s administration has issued similar tariff threats to 23 countries. The escalation with Canada follows a recent 50% tariff imposed on Brazil, linked to the ongoing trial of former President Jair Bolsonaro. Critics argue that Trump’s tariff policy is erratic and reflects his failure to negotiate stable trade frameworks.

While the 2020 United States Mexico Canada Agreement (USMCA) has shielded some goods from previous tariffs, the agreement is scheduled for review in 2026, adding further uncertainty to the future of trade relations. The situation has investors on edge, with the recent gains in the S&P 500 suggesting that many expect Trump to eventually backtrack. However, the potential for a full-blown trade war remains a significant concern.

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