Canadian Prime Minister Mark Carney responded on Friday to President Donald Trump's threats to impose a 35% tariff on Canada starting Aug. 1, an increase from the initial 25% tariff rate he had set earlier this year.

The letter reiterated Trump’s complaints about dairy quotas, fentanyl and the U.S. trade deficit, which is mostly fueled by American refineries’ thirst for Canadian oil. His social media post caused the Canadian dollar to immediately tumble, indicating the market wasn’t expecting this escalation.

Canada’s PM Carney rejects Trump’s fentanyl claims amid 35% tariff threat. US-Canada trade talks extended to August 1 as global tariffs escalate.

The Canadian government told employees they may face job losses, as Prime Minister Mark Carney searches for spending cuts to keep the budget deficit in check.

Canada would bear the brunt of Trump's tariffs in terms of economic contraction, says The Budget Lab of Yale.

Canadian Prime Minister Mark Carney's statement came after US President Donald Trump said the new tariff rate would go into effect on August 1 and would go up if Canada retaliated.

The investments that Prime Minister Mark Carney held before handing them over to a blind trust have been publicly disclosed by the ethics commissioner.

Canadian Prime Minister Mark Carney has confirmed his government’s review of its C$19 billion F-35 fighter jet deal will be completed by the end of the summer, a move fueled by rising tensions with the Trump administration.