Canada is facing a 35% tariff on imports to the U.S. starting Aug. 1, said President Trump, though some of the country’s goods may still be exempt.

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.

WASHINGTON/OTTAWA, July 10 (Reuters) — U.S. President Donald Trump said on Thursday the United States would impose a 35% tariff on imports from Canada next month and planned to impose blanket tariffs of 15% or 20% on most other trading partners.