Treasury Yields Jump as Trump Targets Canada with 35% Tariff

U.S. Treasury yields climbed Friday after former President Donald Trump announced a 35% tariff on Canadian imports, escalating trade tensions. Yields on the 10-year, 30-year, and 2-year notes all rose as investors reacted to the news.

Trump said Canada’s failure to cooperate on stopping fentanyl imports played a role in the decision, and he warned that blanket tariffs of 15–20% on other nations may follow. The sharp moves come on the heels of earlier 50% tariffs on Brazil and copper imports.

Markets are now bracing for new inflation data and the Fed’s monthly budget statement, expected later today.