Oh Canada! Trump threatens Canadian imports with 35% tariff, citing fentanyl crisis

Trade War & Tariffs - The US president is reigniting a trade war with Canada, threatening a 35% tariff on goods if a deal isn't struck by August 1 [1][2] - The president is also making trade moves against Brazil, potentially leading to further negotiations before August 1 [3] - The average American could pay $2,400 more per year if the tariffs remain in place [5] - The current average tariff imposed by the US is 15-16%, the highest since 1936 [6] - The imposition of tariffs may lead to price increases in the fall, particularly for auto dealers [7] Fentanyl & Border Security - Of the 22,000 pounds of fentanyl that crossed the American border, only 43 pounds came from Canada [4] - The president is making false claims about the amount of fentanyl flowing from the northern border [2] Trade Agreement Progress - The president promised 90 deals in 90 days, but only two framework agreements and one tariff pause with China have materialized [9] - There is a lack of clarity regarding the rationale for tariffs, whether it's to raise revenue, reduce the deficit, or level the playing field [10] Economic Impact & Market Reaction - The tariffs haven't significantly impacted inflation yet, possibly due to businesses using pre-tariff inventories [7] - Wall Street seems to believe the president will eventually back away from the tariffs [11] - Even if the president backs away, baseline tariffs could remain 10%, almost five times higher than the previous administration [11]