Canada’s top stock index declined on Friday following an escalation in trade tensions, as US President Donald Trump intensified his tariff measures against the country.
Late Thursday, Trump issued a formal notice imposing a 35 per cent tariff on all Canadian imports, effective August 1st. He warned that the rate could rise further if Canada responded with retaliatory measures.
Trump also indicated that the European Union might receive a similar tariff notice by Friday. He floated the idea of applying a blanket tariff of 15 per cent to 20 per cent on imports from other nations — a significant increase from the current standard rate of 10 per cent.
The new 35 per cent tariff marks a jump from the previous 25 per cent rate applied to Canadian goods and represents a setback for Prime Minister Mark Carney, who had been working toward a trade agreement with the US.
Trump cited the issue of fentanyl as a justification for the increased tariffs on Canada. He claimed the duties would rise further if Canada retaliated. However, data from US Customs and Border Protection showed relatively small fentanyl seizures at the Canadian border during the early months of the 2024–25 fiscal year — typically 0.5 kilograms or less — before an increase in April and May, when 6 and 14 kilograms were seized, respectively.
In an interview with NBC News, Trump reiterated his plan to impose broad tariffs of 15 per cent to 20 per cent on other countries, surpassing the 10 per cent rate that investors had come to expect.
| TSX | 27,023.25 | -59.05 |  |
| TSXV | 784.42 | +10.98 |  |
| CSE | 130.48 | -3.08 | |
| DJIA | 44,371.51 | -279.13 | |
| NASDAQ | 20,585.53 | -45.14 | |
| S&P 500 | 6,259.75 | -20.71 | |
The Canadian dollar traded for 73.11 cents US compared to 73.10 cents US on Thursday.
US crude futures traded US$2.11 higher at US$68.68 a barrel, and the Brent contract rose US$1.99 to US$70.63 a barrel.
The price of gold was up US$39.05 to US$3,356.36.
In world markets, the Nikkei remained at ¥39,535.89, the Hang Seng remained at HK$24,029.97, the FTSE remained at ₤8,973.60, and the DAX remained at €24,472.60.
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