Trump plans to hike tariffs on Canadian goods to 35%

President Donald Trump said in a letter that he will raise taxes on many imported goods from Canada to 35%, deepening a rift between the two North American countries that have suffered a debilitating blow to their decades-old alliance.

- Associated Press

The Thursday letter to Canadian Prime Minister Mark Carney is an aggressive increase to the top 25% tariff rates that Trump first imposed in first imposed in March after months of threats

March after months of threats. Trump's tariffs were allegedly in an effort to get Canada to crack down on fentanyl smuggling despite the relatively modest trafficking in the drug from that country. Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America. “I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many tariffs, and Non-Tariff Policies and Trade Barriers,” Trump wrote in the letter.

The higher rates would go into effect since August I, creating a tense series of weeks ahead for the global economy as recent gains in the S&P 500 stock index suggest many investors think Trump will ultimately back down on the increases. But stock market futures were down early on Friday in a sign that Trump's wave of tariff letters may be starting to generate concern among investors.