President Donald Trump said the U.S. will increase its tariff rate on Canadian goods to 35% starting next month. An outline of a trade deal with the European Union is close to being finished, a spokesman for the bloc said Friday,

On Thursday, the president announced a 35 percent tariff on all Canadian goods not covered by the United States-Mexico-Canada Agreement (USMCA) to take effect on August 1, unless a trade deal is reached before then.

US stock futures fell on Friday after President Trump threatened Canada with a 35% tariff on its imports to the US and floated higher blanket levies. Trump on Truth Social posted a letter to Canadian Prime Minister Mark Carney,

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

Although markets are trying to shrug off the week's U.S. tariff threats as yet another negotiation tactic, there's growing unease at the daily barrage, the latest being a 35% tariff on Canadian goods and higher levies on other countries.