U.S. Stocks Plummet As Trump Unveils 35% Tariff On Canada
U.S. stocks are deep in the red on July 11 after U.S. President Donald Trump announced a 35% tariff on most imports from Canada beginning August 1.
The blue-chip Dow Jones Industrial Average is down 305 points, while the benchmark S&P 500 and technology-laden Nasdaq indices are each down 0.6% on news of the Canadian tariffs.
Trump cited fentanyl as a reason for the duties on products shipped to America from neighbouring Canada.
The American president added that U.S. duties will go higher if Prime Minister Mark Carney’s government retaliates.
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote on social media.
The threat of new duties on Canada comes as Trump reignites his trade war. In recent days, he has also threatened a 50% tariff on imported copper, as well as a 50% tariff on Brazil.
The renewed tariff threats have once again roiled the stock market with the major U.S. averages on pace to end the week little changed.
Prime Minister Carney was quick to reply to Trump on social media, writing: “Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries.”
While Canada’s federal government in Ottawa has worked with the Trump administration on tariffs, Canadian consumers have boycotted travel to the U.S. and many American products, including liquor and automobiles in retaliation.
In Canada, the benchmark Toronto Stock Exchange is up 0.41% on July 11 and has risen 9% so far in 2025, outpacing the 7% increase seen in the S&P 500 index.
