President Trump on Thursday threatened to impose a 35% tariff on Canada starting August 1, as well as 15% to 20% tariffs on other nations. Like with other tariff threats he issued this week, Trump said the increased levy would be subject to negotiations. Trump accused Canada again of allowing fentanyl to cross the border into the U.S., a claim which has been discredited. Earlier this year, Trump imposed a 50% tariff on Canadian steel and aluminum, and 25% on car parts.

Separately, Brazilian President Luiz Inácio Lula da Silva vowed Thursday to retaliate in kind if Trump goes ahead with a threatened 50% tariff on his country.

President Luiz Inácio Lula da Silva: “There’s no doubt that first we’ll try to negotiate. But if there’s no negotiation, the reciprocity law will put us into practice. If he charges us 50%, we’ll charge him 50%.”

In May, the U.S. Court of International Trade blocked much of Trump’s global tariffs agenda, ruling he exceeded his authority by invoking emergency powers. Trump is currently appealing that case.