In a significant move, President Trump has announced a 35% tariff on goods imported from Canada, effective August 1. This decision has escalated tensions in US-Canada trade relations, prompting fears of a trade war. The tariff applies specifically to Canadian imports, with indications that additional tariffs ranging from 15% to 20% could be imposed on goods from other nations. As markets react, US stock index futures have fallen, and the Canadian government is preparing to respond to these new trade measures. The situation underscores the increasing volatility in international trade dynamics as both countries brace for potential retaliatory actions.