US stocks fell on Friday after President Donald Trump threatened a 35% tariff on Canada — a sharp escalation in an ongoing trade war.

President says Canada’s tariff retaliation, lack of progress on curbing fentanyl smuggling is behind new import penalty

President Donald Trump announced a significant development in his trade war against the United States' trading partners. *Stock prices used were the afternoon prices of July 6, 2025. The video was published on July 8,

US stocks’ record highs obscure the risks Donald Trump poses to the world’s biggest economy, according to big investors and senior bankers who have warned over growing “complacency” in the markets. Senior executives from Amundi to JPMorgan Chase said buoyant markets were pricing in too much confidence that the US president will back down from policies most likely to threaten the country’s financial stability.

Wall Street warns that record US stock highs mask deeper risks, as investors fear Trump’s looming tariffs and rising deficits could destabilize markets despite current optimism.