Trump threatened to escalate tariffs beyond 35% if Canada opts to retaliate with tariffs on U.S. goods. Canadian goods are also subject to sector-specific tariffs, such as 50% levies on steel and aluminum as well as 25% tariffs on non-USMCA compliant autos and auto parts.

President Donald Trump announced a new set of duties on goods that were not covered by an existing sectoral tariffs in place against Canada.

Multiple states bordering Canada could feel the greatest impact of a 35 percent tariff on Canadian products starting August 1.