The trade war between the US and Canada has escalated sharply with President Donald Trump increasing the tariff rate on Canadian imports from 25% to 35%. Most goods will avoid the increased costs entering the US market because they are protected by a trade treaty.

President Donald Trump said the US will put a 35% tariff on some imports from Canada, escalating the tensions between two countries that have impaired one of the world’s largest trading relationships.

Canada faces steep 35% tariffs on almost 60% of its U.S. imports — if President Trump follows through tomorrow on his Aug. 1 deadline for imposing the extraordinary duty.