By JOSH BOAK, Associated Press

WASHINGTON (AP) — President Donald Trump said in a letter that he will raise taxes on many imported goods from Canada to 35%, deepening a rift between two North American countries that have suffered a debilitating blow to their decades-old alliance.

The Thursday letter to Canadian Prime Minister Mark Carney is an aggressive increase to the top 25% tariff rates that Trump first imposed in March after months of threats. Trump’s tariffs were allegedly in an effort to get Canada to crack down on fentanyl smuggling despite the relatively modest trafficking in the drug from that country. Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America.

“I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers,” Trump wrote in the letter.

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The higher rates would go into effect Aug. 1, creating a tense series of weeks ahead for the global economy as recent gains in the S&P 500 stock index suggest many investors think Trump will ultimately back down on the increases. But stock market futures were down early Friday in a sign that Trump’s wave of tariff letters may be starting to generate concern among investors.

In a social media post, Carney said Canada would continue to work toward a new trade framework with the U.S. and has made “vital progress to stop the scourge of fentanyl.”

“Through the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and business,” Carney said.

While multiple countries have received tariff letters this week, Canada — America’s second largest trading partner after Mexico — has become something of a foil to Trump. It has imposed retaliatory tariffs on U.S. goods and pushed back on the president’s taunts of making Canada the 51st state. Mexico has also faced 25% tariffs because of fentanyl, yet it has not faced the same public pressure from the Republican U.S. president.

Carney was elected prime minister in April on the argument that Canadians should keep their “elbows up.” He has responded by distancing Canada from its intertwined relationship with the U.S., seeking to strengthen its links with the European Union and the United Kingdom.

Hours before Trump’s letter, Carney posted on X a picture of himself with British Prime Minister Keir Starmer, saying, “In the face of global trade challenges, the world is turning to reliable economic partners like Canada.” Implied in his statement was that the U.S. has become unreliable because of Trump’s haphazard tariff regime, which has gone through aggressive threats and reversals.

When Carney went to the White House in May, the public portion of their meeting was cordial. But Trump said there was nothing the Canadian leader could tell him to remove the tariffs, saying, “Just the way it is.”

Daniel Beland, a political science professor at McGill University in Montreal, said Trump’s latest move will make it more difficult for Canada and the U.S. to reach a trade deal, Beland said.

“It doesn’t mean a new trade deal between Canada and the United States is impossible, but it shows how hard it is for the Canadian government to negotiate with a U.S. president who regularly utters threats and doesn’t appear to be a reliable and truthful interlocutor,” he said.

Trump has sent a series of tariff letters to 23 countries. Those form letters became increasingly personal with Canada as well as a Wednesday note that put a 50% tariff on Brazil for the ongoing trial of its former President Jair Bolsonaro for trying to stay in office after his 2022 election loss. Trump was similarly indicted for his efforts to overturn his 2020 election loss to Democrat Joe Biden.

Trump administration officials have said that Trump was seeking to isolate its geopolitical rival China with the tariffs, but the latest tariffs have undermined that message. Brazil’s largest trading partner is China, not the U.S., and Chinese government officials have framed his import taxes as a form of bullying.

“Sovereign equality and non-interference in internal affairs are important principles of the U.N. Charter and basic norms governing international relations,” said Mao Ning, the Chinese Foreign Ministry spokesman. “Tariffs should not be used as a tool for coercion, bullying and interference in the internal affairs of other countries.”

The letters reflect the inability of Trump to finalize the dozens of trade frameworks that he claimed would be easy to negotiate. Shortly after unveiling his April 2 “Liberation Day” tariffs, a financial market selloff caused Trump to announce a 90-day negotiating period during which a 10% baseline tariff would be charged on most imported goods.

But Trump has indicated that the 10% tariff rates are largely disappearing as he resets the rates with his letters.

“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%,” Trump said in a phone interview with NBC News.

Trump has announced trade frameworks with the U.K. and Vietnam, as well as a separate deal with China to enable continued trade talks. Trump jacked up import taxes on Chinese goods to as much as 145%, but after talks he has said China faces total tariffs of 55%.

In June, Trump said he was suspending trade talks with Canada over its plans to continue its digital services tax, which would hit U.S. technology companies. A few days later, talks resumed when Carney rescinded the tax.

Under the current tariff structure, the 2020 United States Mexico Canada Agreement has protected eligible goods from Trump’s tariffs. But a review of the pact is scheduled for 2026.

Jim Morris contributed to this report from Vancouver, British Columbia.

By MICHELLE CHAPMAN, Associated Press Business Writer

Bitcoin has reached an all-time high, surpassing $118,000 as a flood of money moves into spot bitcoin ETFs, which have opened up cryptocurrency investing to millions.

A soft U.S. dollar and the digital currency friendliness of President Donald Trump’s administration has also helped to push the price of bitcoin to unprecedented levels recently.

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Last month the Senate passed legislation that would regulate a form of cryptocurrency known as stablecoins, the first of what the industry hopes will be a wave of bills to bolster its legitimacy and reassure consumers.

The fast-moving legislation comes on the heels of a 2024 campaign cycle in which the crypto industry ranked among the top political spenders in the country, underscoring its growing influence in Washington and beyond.

Known as the GENIUS Act, the bill would establish guardrails and consumer protections for stablecoins, a type of cryptocurrency typically pegged to the U.S. dollar. The acronym stands for “Guiding and Establishing National Innovation for U.S. Stablecoins.”

Next week the House of Representatives will be considering the GENIUS Act as part of Congress’ efforts to strengthen the country’s crypto position.

By HANNA ARHIROVA, VASILISA STEPANENKO and ILLIA NOVIKOV, Associated Press

KYIV, Ukraine (AP) — By day, the Ukrainian capital hums with life — crowded metros, dog walkers and children on playgrounds. By night, Kyiv becomes a battleground as Russia unleashes relentless drone and missile attacks that chase much of the population underground for safety.

The nighttime assaults have intensified in the fourth year of the full-scale invasion, with the number of drones sometimes exceeding 700. Swarms of 1,000 drones could soon become the norm, officials say.

Many people in Kyiv describe the recent attacks as the most terrifying of the war, and even residents who previously ignored sirens have been driven into bomb shelters in the subway system.

People sleep on the platform of a metro station as they take cover during a Russian attack on Kyiv, Ukraine, on Thursday, July 10, 2025. (AP Photo/Evgeniy Maloletka)

“During the day, you walk around, drink coffee, smile, meet friends, talk, have hobbies, chill,” said 25-year-old Karyna Holf. “But at night, you brace for death every time you hear the sound of a Shahed drone or a missile.”

A Russian attack on Thursday badly damaged her apartment. She was in the living room near a window when she heard the whistling sound of an incoming weapon. Moments later, the home shattered into pieces. She was lucky to survive.

The constant proximity to death often fuels dark humor. At night, many are paralyzed by fear. But by day, they joke that they don’t sleep naked, just in case they end up under rubble and rescuers have to pull them out.

“It’s like a computer game where you try to survive and still remain functional,” said 35-year-old Danylo Kuzemskyi, describing the balance between daily life and war.

The buzzing of drones — often ending in explosions — and the constant thud of air defenses can last for hours. The noise leaves many people chronically exhausted from lack of sleep.

Local residents stand outside of their house which was heavily damaged by a Russian strike in Kyiv, Ukraine, on Thursday, July 10, 2025. (AP Photo/Evgeniy Maloletka)

The drones blanket wide areas of the city, covered in darkness pierced only by the flashes of air defense fire. The air is filled with smoke and the smell of gunpowder.

Since the beginning of the year, more than 800 sites in Kyiv have been hit, including over 600 residential buildings, said the head of the Kyiv city administration, Tymur Tkachenko.

“They are deliberately hitting apartment buildings and urban districts,” he said. “This is their tactic — to spread fear and increase the number of civilian casualties.”

Russia insists that it strikes only military targets, though there are abundant examples throughout the war of civilian infrastructure being hit.

The attacks have also strengthened the solidarity among Kyiv residents. On social media, people post with pride that they can still grab a cappuccino in the morning, make it to a workout or keep their appointments — without canceling a thing.

“I understand that Russia’s terror is aimed not only at military targets but at the entire Ukrainian people. Russia is trying to demoralize us,” said Kuzemskyi, whose apartment was destroyed in a previous attack. “Is it succeeding? In my case, I’d say no.”

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He is among those who no longer go to shelters during attacks, saying he now “prioritizes sleep” over safety.

For 23-year-old Oleksandra Umanets, who has a 10-month-old son, the shelter in the subway feels safer than her home at night.

Around 5 a.m., she usually leaves the shelter with her child, walks home, lies down to sleep and wakes up relieved to see her baby smiling.

“I see the same kids running, playing — and moms who are smiling,” she said of their walks during the day. “You wouldn’t guess they spent the night in the metro or didn’t sleep at all, even though everyone knows it. But no one talks about it. Everyone just keeps living.”

Then evening comes. She packs a bag, places it by the door, prepares the stroller and lays out clothes for herself and her baby. When the siren sounds again, she’s ready to hide.

“When it’s about you — that’s one thing. But when it’s about your child, for what?” she said. “To kill him just for being born in Ukraine? He didn’t choose where to be born.”

By LINLEY SANDERS, Associated Press

WASHINGTON (AP) — Just months after President Donald Trump returned to office amid a wave of anti-immigration sentiment, the share of U.S. adults saying immigration is a “good thing” for the country has jumped substantially — including among Republicans, according to new Gallup polling.

About 8 in 10 Americans, 79%, say immigration is “a good thing” for the country today, an increase from 64% a year ago and a high point in the nearly 25-year trend. Only about 2 in 10 U.S. adults say immigration is a bad thing right now, down from 32% last year.

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During Democratic President Joe Biden’s term in office, negative views of immigration had increased markedly, reaching a high point in the months before Trump, a Republican, took office. The new Gallup data suggests U.S. adults are returning to more pro-immigrant views that could complicate Trump’s push for sweeping deportations and other anti-immigration policies. The poll shows decreasing support for the type of mass deportations Trump has championed since before he was elected.

Since taking office, Trump has called on U.S. Immigration and Customs Enforcement to do all in its power to deliver “the single largest Mass Deportation Program in History.” His administration has also pushed to limit access to federal benefits for immigrants who lack legal status, sought to revoke the citizenship of immigrants who commit crimes and is working to end birthright citizenship for children born to those without legal status or who are in the country temporarily.

In general, Americans’ views of immigration policies have shifted dramatically in the last year, the Gallup polling shows — including among Republicans, who have become much more content with immigration levels since Trump took office but who have also grown more supportive of pathways to citizenship for people in the country illegally.

The broader trend also shows that public opinion is generally much more favorable to immigrants than it was decades ago.

The vast majority of U.S. adults say immigration is good

Americans’ more positive view on immigration is driven primarily by a shift among Republicans and independents.

About two-thirds of Republicans now say immigrants are “a good thing” for the country, up from 39% last year. And independents moved from about two-thirds last year to 80% this year.

Democrats have maintained their overwhelmingly positive view of immigration in the last few years.

The share of Americans who want immigration decreased has dropped significantly

In the time since Trump took office, Republicans have become more satisfied with the level of immigration in the country.

The share of Americans who want immigration “decreased” in the United States dropped from 55% to 30%. While fewer Americans now want to decrease the number of people who come to the U.S. from other countries, more want immigration levels kept the same than want higher immigration levels. About 4 in 10 say immigration should be kept at its current level, and only 26% say immigration should be increased.

The poll suggests Republicans’ sharp anti-immigrant views highlighted before November’s election — which helped return Trump to the White House — have largely faded. The share of Republicans saying immigration should be decreased dropped from a high of 88% to 48% in the last year. Close to 4 in 10 Republicans now say immigration levels should remain the same, and only about 1 in 10 would like an increase.

Much of that Republican movement likely comes from support for the Trump administration’s stringent immigration enforcement, but there are also signs in the Gallup polling that Republicans have become more supportive of pathways to citizenship for immigrants in the country illegally and more likely to see benefits from immigration that could be at odds with the Trump administration’s priorities.

More Americans back a pathway to citizenship

Most Americans favor allowing immigrants living in the U.S. illegally the chance to become U.S. citizens if they meet certain requirements over a period of time, the poll shows.

Almost 9 in 10 U.S. adults, 85%, favor a pathway to citizenship for immigrants who were brought to the U.S. illegally as children, and nearly as many say they favor a path to citizenship for all immigrants in the country illegally as long as they meet certain requirements.

That increased support for pathways to citizenship largely comes from Republicans, about 6 in 10 of whom now support that, up from 46% last year. Support was already very high among independents and Democrats.

Support for deporting immigrants in the country illegally has also decreased across the board, but less significantly. About 4 in 10 U.S. adults now favor deporting immigrants who are in the country illegally, down from about half a year ago.