Trump wrote to Carney to inform him that, from August 1, Canada will face a 35 percent import tariff after the two sides failed to reach a deal during the recent pause. The American leader said he would consider revising the 35 percent tariff "if Canada works with me to stop the flow of Fentanyl".

President Trump's gone maximalist again on tariffs, and just like the last time, it appears the only thing that could stop him is a market meltdown. Why it matters: Stocks seem very, very disinclined to stop the historic rally they've been on for the last three months.

A 200% tariff rate — even with a delay — will have a detrimental effect on drug prices and profit margins, analysts warn.

Here are the top stories to read ahead of Friday's trading:

The announcement came in a letter published on Truth Social, in which Mr Trump responded to a letter sent last week by Canadian Prime Minister John Carney

Thaksin Shinawatra, the de facto leader of Thailand’s ruling party, is taking a more proactive role in shaping the country’s response to deal with the fallout of President Donald Trump’s threat to impose a steep 36% tariff on its exports to the US.

Critics say the tariff on Brazil could further erode the Trump administration's credibility as it pursues an aggressive trade agenda.

"Deeply regrettable" is how Japanese Prime Minister Shigeru Ishiba has described US President Donald Trump's latest tariff threat - a 25% levy on Japanese goods. Tokyo, a long-time US ally, has been trying hard to avoid exactly this.