U.S. Treasury yields moved higher on Friday as President Donald Trump slapped 35% tariffs on Canada and investors digested a week of trade drama.

The 10-year Treasury yield was up 4 basis points to 4.387%, and the 30-year yield was up 5 basis points at 4.914%. The 2-year yield was higher by 2 basis points, reaching 3.887%.

One basis point is equal to 0.01%. Yields and prices move in opposite directions.

Trump announced on Thursday that levies on Canadian imports will rise to 35% on Aug. 1.

“Instead of working with the United States, Canada retaliated with its own Tariffs,” Trump said in a letter to Mark Carney, the prime minister of Canada, posted on Truth Social.

He also attributed the reason for the high rate to fentanyl: “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter.”

Trump then said to NBC News he was planning blanket tariffs of 15% to 20% on remaining countries. This is higher than the current 10% standard that investors have grown comfortable with.

This news comes after Trump imposed 50% tariffs on imports from Brazil as well as 50% tariffs on copper.

The president told NBC News’ Kristen Welker late Thursday that Canada and the European Union may receive letters outlining the latest tariff proposals as soon as today.

Source: Cnbc