US President Donald Trump has announced that all imports from Canada will have a 35% tariff as of August 1. He sent a letter to the country’s president, Mark Carney, informing him of the new rate, which has also been posted on his Truth Social account.

Canada became the latest country to be slapped with increased tariffs by the Trump administration on Thursday. Starting August 1,

Canada is seeking to finalise a free trade deal with Southeast Asian nations as part of a push to expand into new markets, its top diplomat said, responding to the hefty tariffs imposed on it by the United States,

“Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians,” Canadian Finance Minister François-Philippe Champagne said in a statement Sunday night.

President Donald Trump announced a new set of duties on Canadian goods that were not covered by existing sectoral tariffs.

Canada's trade deficit in May narrowed after a record-breaking deficit in April as total exports rose and imports fell even as the impact of U.S. tariffs dented shipments south of the border, data showed on Thursday.

The federal government, industry, and provinces are seizing the crisis to try and build more stuff more quickly - "build, baby, build" in the words of our prime minister - under the premise that it will help reduce dependency on an increasingly unpredictable neighbour.