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.

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.

If implemented, Trump's new 35 percent duties will be "separate from all Sectoral Tariffs," such as the 50 percent tariff on steel and aluminum imports. Trump also promised that, if Canada raises its own tariffs in response, then "whatever number [Canada chooses] to raise them by, will be added onto the 35% that [the U.S. charges]."

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

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.