U.S. stocks fell Friday following President Donald Trump’s announcement of a potential 35% tariff on Canadian imports, up from the current 25% rate. The threat comes amid ongoing trade tensions and raises concerns about disrupting the recent market rally.
A White House official confirmed that goods compliant with the U.S.-Mexico-Canada Agreement (USMCA) will be temporarily exempt from the higher tariff rate, which is set to take effect on August 1. Canadian Prime Minister Mark Carney expressed optimism, stating Canada will work closely with the U.S. to finalize a trade deal before the deadline.
Meanwhile, NBC News reported that the European Union is awaiting tariff details from the White House, even as the EU signals readiness to complete a trade agreement. Trump is also reportedly considering broad tariffs ranging from 15% to 20% on other trading partners yet to receive official notices.
Markets reacted swiftly:
- The Dow Jones Industrial Average led declines on Wall Street.
- The 10-year U.S. Treasury yield rose to 4.347%.
- Bitcoin surged to an intraday high above $118,000 before retreating.
- European and most Asian markets slipped, with China as an exception.
Despite these jitters, the S&P 500 hit a record high just a day earlier, showing resilience amid global trade uncertainties.
Investors will be watching closely for further developments as tariff deadlines approach and trade negotiations continue.