President Trump announced a 35% tariff on our northern neighbors of Canada, citing concerns over fentanyl entering the U.S. NBC News’ Monica Alba reports from the White House. CNBC’s Senior Analyst Ron Insana joins Alex Witt to discuss how much more the average American could be spending per year if these tariffs stay in place.

A day after President Trump announced a new 35 percent tariff on Canadian goods beginning next month, Prime Minister Mark Carney said Canada had made “vital progress” towards stopping fentanyl.

The letter reiterated Trump’s complaints about dairy quotas, fentanyl and the U.S. trade deficit, which is mostly fueled by American refineries’ thirst for Canadian oil. His social media post caused the Canadian dollar to immediately tumble, indicating the market wasn’t expecting this escalation.

President Trump warns Canadian Prime Minister Mark Carney of a new 35% tariff on Canadian imports if the country doesn't address fentanyl trafficking and existing trade disputes.

Trump threatens Canada with 35% tariffs starting August 1, causing market volatility and diplomatic tension during ongoing trade negotiations.

Under Trump's directive, major U.S. trading partners face increased import taxes, as international tensions rise.

The latest data from U.S. Customs and Border Protection (CBP) shows an uptick in the amount of fentanyl seized near the American northern border with Canada — but the quantities intercepted remain a tiny fraction of what's coming from Mexico.