President Donald Trump escalated his trade offensive against Canada on Thursday, announcing that the U.S. would implement a 35% tariff on Canadian imports next month, alongside plans to impose broad tariffs of 15% to 20% on most other trading partners.

The hike in import taxes deepens a rift between two North American countries that have suffered a debilitating blow to their decades-old alliance.

In a letter released on his social media platform, Trump told Canadian Prime Minister Mark Carney the new rate would go into effect on Aug. 1 and would go up if Canada retaliated.

In a post on social media platform X late on Thursday, Carney said his government will continue to defend Canadian workers and businesses in their negotiations with the U.S. as they work toward that deadline.

The 35% tariff is an increase from the current 25% rate that Trump had assigned to Canada and is a blow to Carney, who was seeking to agree a trade pact with Washington.

An exclusion for goods covered by the United States-Mexico-Canada Agreement (USMCA) on trade was expected to stay in place, and 10% tariffs on energy and fertilizer were also not set to change, though Trump had not made a final decision on those issues, an administration official said.

Trump complained in his letter about what he referred to as the flow of fentanyl from Canada as well as the country’s tariff- and non-tariff trade barriers that hurt U.S. dairy farmers and others. He said the trade deficit was a threat to the U.S. economy and national security.

“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote.

Canadian officials say a minuscule amount of fentanyl originates from Canada, but they have taken measures to strengthen the border.

“Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries,” Carney added in his X post late Tuesday.

The prime minister said last month that he and Trump had agreed to wrap up a new economic and security deal within 30 days.

EU tariffs worry

Trump has broadened his trade war in recent days, setting new tariffs on a number of countries, including allies Japan and South Korea, along with a 50% tariff on copper.

His latest salvo rattled investors anew, with U.S. and European stock futures dipping in Asia on Friday as markets nervously awaited word on what tariff Trump would assign the European Union later on Friday.

The potential escalation between the EU and the U.S. is a big deal for financial markets,” said Joseph Capurso, head of international economics at the Commonwealth Bank of Australia. “If you get something similar to (the U.S.-China trade war in April), that’s going to be very destabilising.”

In an interview with NBC News published on Thursday, Trump said other trading partners that had not yet received such letters would likely face blanket tariffs.

“Not everybody has to get a letter. You know that. We’re just setting our tariffs,” Trump said in the interview.

“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump was quoted as saying by the network.

Myanmar’s ruling military general has asked Trump to reduce the 40% tariff rate on his country’s exports to the U.S. to 10%-20% and is ready to send a negotiation team to Washington if needed, state media reported on Friday.

The president of the Philippines will meet Trump in Washington this month for the first time and will discuss its 20% tariff, the country’s foreign minister said.

Canada is the second-largest U.S. trading partner after Mexico, and the largest buyer of U.S. exports. It bought $349.4 billion of U.S. goods last year and exported $412.7 billion to the U.S., according to U.S. Census Bureau data.

Carney, who led his Liberal Party to a comeback election victory earlier this year with a pledge to tackle trade challenges with the U.S., had been aiming to negotiate a trade deal with its key trading partner by July 21.

Trump, in his letter, did not specifically address how trade negotiations were proceeding, but he said the “tariffs may be modified, upward or downward, depending on our relationship with your Country.”

Last month, the Carney government scrapped a planned digital services tax targeting U.S. technology firms after Trump abruptly called off trade talks saying the tax was a “blatant attack.”

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The Turkish Treasury said on Friday it borrowed 1.5 billion euros ($1.75 billion) in a Eurobond issue with maturity in 2031 and a 5.2% yield.

In a statement, the Treasury and Finance Ministry said it received more than three times the demand for the size of the issuance, which is part of Türkiye’s 2025 external financing program.

The transaction was finalized on Thursday, with BNP Paribas, Citibank, ING Bank and Standard Chartered mandated as joint bookrunners.

The issuance attracted participation from around 140 investors, the statement said. Eurobonds were sold to investors from Britain, the United States, European countries and the Middle East, among others.

The Treasury has borrowed a total of $8.75 billion from international markets so far this year.

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The United Arab Emirates (UAE) was the country where Türkiye increased its exports the most in value terms in the first half of the year, with shipments rising 64.5% to nearly $3.3 billion, according to a report Thursday.

Türkiye’s total exports from January to June rose 4.1% year-over-year to $131.4 billion, Anadolu Agency (AA) reported, citing data from the Turkish Exporters Assembly (TIM).

In June alone, exports increased 8% from a year earlier to $20.5 billion.

The automotive sector led all industries in export value during the first half, with $19.99 billion in sales. It was followed by chemicals and chemical products at $15.76 billion and the electrical-electronics sector at $8.33 billion.

Exports to the UAE increased by $1.28 billion compared to the same period last year, rising from $1.98 billion to $3.26 billion – a 64.5% jump. That marked the largest increase in value among all export markets.

Germany followed with an increase of $804.8 million, the U.K. with $685 million, Slovenia with $643.6 million, and Italy with $479 million.

In total, exports during the first half amounted to $9.72 billion to Germany, $6.56 billion to the U.K., $6.4 billion to Italy and $1.74 billion to Slovenia.

UAE 10th largest export market

Türkiye’s top 10 export markets in the first half were Germany, the U.K., Italy, the U.S., Spain, France, Iraq, Romania, the Netherlands and the UAE.

The jewelry sector was the leading Turkish exporter to the UAE, with $1.81 billion in shipments during the six-month period. Other top sectors included chemicals and chemical products ($250 million), electrical and electronics ($135.6 million), steel ($94.6 million), grains and pulses ($87.5 million), and ready-to-wear and apparel ($66.7 million).

Istanbul-based companies accounted for the largest share of exports to the UAE, totaling $1.63 billion. They were followed by companies in Çorum with $1.06 billion, Izmir with $72.2 million and Ankara with $69.7 million.

Mehmet Ali Akarca, head of the Turkey-UAE Business Council at the Foreign Economic Relations Board (DEIK), said the figures reflect the strong level of economic cooperation between the two countries.

“The growth is not only the result of commercial potential but also of strengthening diplomatic relations and mutual trust,” he told AA.

Rise supported by CEPA

Akarca noted that the increase in exports was supported by the Comprehensive Economic Partnership Agreement (CEPA), which came into effect in 2023.

“With CEPA, the reduction in customs tariffs and elimination of technical barriers have simplified trade procedures,” he said.

He added that the UAE’s strategic geographic location, strong infrastructure and business-friendly environment make it a valuable trade hub.

“Despite having a population of just 10 million, the UAE plays a key role in global trade. Turkish firms are increasingly establishing offices there,” he said.

Cities like Dubai and Abu Dhabi, Akarca noted, serve as gateways to Asian, European and African markets, offering major logistical advantages with their modern ports, air cargo hubs and free trade zones.

He also said that the UAE’s role as a re-export center helps boost demand for Turkish goods in the Middle East, Africa and South Asia.

Looking ahead, Akarca said sectors such as digital technologies, health care, food, construction and defense are expected to gain importance in Turkish exports to the UAE.

“During our sectoral delegation visit for digital technologies last year, we saw strong interest in artificial intelligence, cybersecurity, fintech and software,” he said. “There’s also growing demand for food security and health care services, creating long-term partnership opportunities.”

He added: “The defense sector is also on the rise due to evolving geopolitical dynamics and technological transformation.”

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U.S. President Donald Trump announced on Wednesday he would introduce a steep 50% tariff on Brazil, as he blasted the trial of the country’s ex-leader, and said a U.S. “national security” levy on copper would begin in August.

In a letter addressed to Brazilian President Luiz Inacio Lula da Silva, Trump criticized the treatment of his right-wing ally Jair Bolsonaro as an “international disgrace.”

Bolsonaro is facing trial over accusations he plotted a coup after his narrow 2022 election loss to Lula.

In response to Trump’s tariff letter, Lula warned of possible reciprocation, writing on X that “any unilateral tariff increases will be addressed in light of the Brazilian Law of Economic Reciprocity.”

Brazil earlier on Wednesday said it had summoned the U.S. charge d’affaires over Trump’s previous criticism of the Bolsonaro trial.

The 50% U.S. tariff on Brazilian goods will take effect Aug. 1, Trump said in his letter, mirroring a deadline that dozens of other economies face.

On that same date, a 50% tariff on U.S. imports of copper – a key metal used in green energy and other technologies – will take effect, Trump announced Wednesday evening on social media.

He said the move followed a “robust NATIONAL SECURITY ASSESSMENT,” likely alluding to a Department of Commerce investigation into copper launched earlier this year.

“Copper is the second most used material by the Department of Defense!” Trump said.

Escalation threats

Trump’s message to Lula was the latest in more than 20 such letters the U.S. president has released since Monday, after repeatedly threatening to simply decide a rate for countries as negotiations continue over his elevated “reciprocal” tariffs.

Brazil had not been among those threatened previously with duties above a 10% baseline, and the U.S. runs a goods trade surplus with Brazil.

On Wednesday, Trump also addressed letters to leaders of the Philippines, Sri Lanka, Brunei, Algeria, Libya, Iraq and Moldova, spelling out duties ranging from 20% to 30% that would also take effect on Aug. 1.

Similar to a first batch of documents published Monday, the levels were not too far from those originally threatened in April, although some partners received notably lower rates this time.

While Trump in April imposed a 10% levy on almost all trading partners, he unveiled – and then withheld – higher rates for dozens of economies.

The deadline for those steeper levels to take effect was meant to be Wednesday, before Trump postponed it further to Aug. 1.

Countries that faced the threats of elevated duties began receiving letters spelling out U.S. tariff rates on their products.

In the messages, Trump justified his tariffs as a response to trade ties that he says are “far from Reciprocal.”

The letters urged countries to manufacture products in the U.S. to avoid duties, while threatening further escalation if leaders retaliated.

Other countries that have received Trump’s letters include key U.S. allies Japan and South Korea, as well as Indonesia, Bangladesh and Thailand.

EU deal in ‘coming days’?

Analysts have noted that Asian countries have been a key target so far.

But all eyes are on the state of negotiations with major partners who have yet to receive such letters, including the European Union.

The Trump administration is under pressure to unveil more trade pacts. So far, Washington has only reached agreements with the U.K. and Vietnam, alongside a deal to temporarily lower tit-for-tat levies with China.

Trump on Tuesday said his government was “probably two days off” from sending the EU a letter with an updated tariff rate.

An EU spokesperson said Wednesday the bloc wants to strike a deal with the U.S. “in the coming days,” and has shown readiness to reach an agreement in principle.

Apart from tariffs targeting goods from different countries, Trump has rolled out sector-specific duties on steel, aluminum and autos since returning to the White House in January.

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Industrial production in Türkiye rebounded in May, expanding on both an annual and a monthly basis, official data from the country’s statistical authority revealed Thursday.

The industrial production index rose 4.9% year-on-year in May and 3.1% compared to a month earlier, the Turkish Statistical Institute (TurkStat) said.

The surge of 4.9% came following the annual expansion of 3.1% in April and the monthly contraction of 3.2% in the same month, respectively.

The reading marks a positive development after a period of relatively muted and changing dynamics in the sector amid tight monetary conditions in the country.

Of the 12 subsectors measured, 11 posted annual rises, while one declined. The high technology index soared 30.6%, capital goods climbed 12%, and mining and quarrying rose 10% compared to last May.

However, the durable consumer goods index dropped 1.7% compared to the same month last year.

Among monthly figures, high technology production surged 25.3%, capital goods rose 8.6%, and the mining and quarrying index gained 5.3%.

Durable consumer goods rose 4.3% and the manufacturing index climbed 3.2% monthly in May.

Meanwhile, production in the electricity, gas, and steam subsector remained stable compared to April.

Commenting on the data, Industry and Technology Minister Mehmet Fatih Kacır drew attention to the growth recorded in the high technology products group.

“Our industrialists are producing, Türkiye is developing. In May, the industrial production index recorded a 4.9% annual increase and a 3.1% monthly increase. The highest increase occurred in the high-tech product group. Türkiye continues its journey with high-tech and value-added investments,” Kacır said in a post on X.

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Türkiye on Wednesday announced a formal investigation into Elon Musk’s artificial intelligence chatbot Grok and said it could impose a full access ban if necessary, amid a flurry of offensive responses.

The chatbot, developed by Musk’s company xAI, posted vulgarities against President Recep Tayyip Erdoğan, his late mother and personalities, while responding to users’ questions on the X social media platform, according to media reports.

The offensive responses were also directed toward modern Türkiye’s founder, Mustafa Kemal Atatürk, and religious values, media outlets said.

That prompted the office of Ankara’s chief prosecutor to file for the imposition of restrictions under Türkiye’s internet law, citing a threat to public order. A criminal court approved the request early on Wednesday, ordering the Information and Communication Technologies Authority (BTK) to enforce the ban.

Transport and Infrastructure Minister Abdulkadir Uraloğlu was later cited by broadcaster NTV as saying that Türkiye had not yet imposed a total access ban on Grok but that it would do so if necessary.

“Artificial intelligence is software. It acts within the boundaries and permissions you give it. Of course, it improves itself. But at the end of the day, it’s still software. Therefore, it is unacceptable for it to insult people upon request,” Uraloğlu was cited as telling reporters in Ankara.

Authorities have met with X representatives and had already conveyed a request for the removal of some of the content, Uraloğlu said. He did not say when the meeting took place.

Yaman Akdeniz, a cyber law expert at Istanbul Bilgi University, said authorities had identified some 50 posts by Grok as the basis for the investigation, ruling on the access ban and removal of certain content to “protect public order.”

Broad controversy

The incident is part of a broader controversy surrounding a recent update to Grok, which resulted in more “politically incorrect” and unfiltered responses.

In response to mounting controversy, X said it was aware of the recent posts and had taken immediate action to remove inappropriate content.

“Since being made aware of the content, xAI has taken action to ban hate speech before Grok posts on X,” the company said in a statement.

“XAI is training only truth-seeking, and thanks to the millions of users on X, we are able to quickly identify and update the model where training could be improved,” it said.

Concerns over political bias, hate speech and factual inaccuracy in AI chatbots have mounted since the launch of OpenAI’s ChatGPT in 2022.

Screenshots posted on X showed several posts made by Grok in which it praised Adolf Hitler.

XAI said Wednesday that it’s taking down “inappropriate posts,” which appeared to include antisemitic comments.

Musk has not commented on the controversy, but posted Wednesday: “Never a dull moment on this platform.”

Grok was developed by xAI and pitched as an alternative to “woke AI” interactions from rival chatbots like Google’s Gemini, or ChatGPT.

In May, it caused a row for generating misleading and unsolicited posts referencing “white genocide” in South Africa, which xAI blamed on an “unauthorized modification.”

The probe marked the first official investigation into any chatbot in Türkiye since the launch of ChatGPT.

Chatbots, as computer programs, are designed to stimulate real-time conversation with humans, and have grown increasingly popular, but are also known to produce incorrect data and information.

Last month, Musk promised an upgrade to Grok, suggesting there was “far too much garbage in any foundation model trained on uncorrected data.”

On Friday, he said Grok has been improved significantly, and users “should notice a difference.”

Poland to report Grok to EU

Separately on Wednesday, Poland said it is going to report xAI to the European Commission after Grok made offensive comments about Polish politicians, including Prime Minister Donald Tusk.

Poland’s digitization minister, Krzysztof Gawkowski, told RMF FM radio that the government will ask Brussels to investigate the chatbot’s offensive comments.

“I have the impression that we are entering a higher level of hate speech, which is driven by algorithms, and that turning a blind eye or ignoring this today … is a mistake that may cost humanity in the future,” he said.

“The Ministry of Digitization will react in accordance with current regulations, we will report the violation to the European Commission to investigate and possibly impose a fine on X. Freedom of speech belongs to humans, not to artificial intelligence.”

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