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.

It's another curveball in the Canada-US trade war - a new missive by US Donald Trump threatening an unexpected 35% tariff on Canadian goods starting next month.