U.S. President Donald Trump has announced a 35% tariff on Canadian goods, set to take effect from August 1. This follows earlier tariffs of 25% imposed on select Canadian imports. In a letter to Canadian Prime Minister Mark Carney, Trump stated that U.S.-based manufacturing would be exempt from the tariffs. He cited Canada's protectionist dairy policies, trade imbalance with the U.S., and failure to prevent fentanyl trafficking as key reasons behind the move. The new tariff is expected to have a significant impact on the Canadian economy.