President Donald Trump has issued a new warning about imposing additional tariffs on Canadian goods, including lumber and dairy, despite offering a temporary reprieve just one day earlier. In an Oval Office address on Friday, Trump accused Canada of unfair trade practices, particularly regarding U.S. dairy exports, which are subject to a hefty 250% tariff in Canada.
The announcement caused a significant dip in the stock market. Initially down after a mixed jobs report, the Dow Jones Industrial Average dropped another 300 points, or 0.7%. The broader S&P 500 fell by 0.9%, and the Nasdaq dropped by 1.2%, pushing it further into correction territory with a 10% decline from its most recent high.
This new tariff threat follows Trump’s announcement the day before, where he offered a one-month pause on all tariffs between the U.S., Canada, and Mexico, in line with the USMCA free trade agreement. The temporary relief had reassured many industries, particularly those in the automotive and agricultural sectors.
