Canadian Prime Minister Mark Carney expressed his government’s disappointment on Friday over the United States’ decision to raise tariffs on Canadian goods from 25 to 35 percent.
The tariff increase, announced in a new executive order signed by President Donald Trump, comes amid diplomatic tensions between the two countries.
DAILY GAZETTE recall that Trump had earlier warned of potential trade consequences after Carney revealed plans to support the recognition of a Palestinian state at the upcoming UN General Assembly in September.
“The Canadian government is disappointed by this action,” Carney said in an official statement.
While some Canadian goods remain protected under the 2020 United States-Mexico-Canada Agreement (USMCA), the broader increase will affect key sectors of Canada’s export economy.
Trump’s order cited multiple reasons for the new tariffs, including Canada’s alleged failure to help “curb the ongoing flood of fentanyl and other illicit drugs” into the US, and what the administration called “retaliation” against earlier U.S measures.
Carney, however, defended Canada’s efforts. “Canada accounts for only one percent of US fentanyl imports and has been working intensively to further reduce these volumes,” he said, adding that the country has also taken steps to boost border security.
Despite the growing tensions, the Canadian leader reaffirmed Ottawa’s commitment to the trilateral trade agreement.
“The US application of CUSMA means that the US average tariff rate on Canadian goods remains one of its lowest for all of its trading partners,” Carney noted.
Still, he acknowledged that several major sectors, including lumber, steel, aluminum, and automobiles remain vulnerable to the rising wave of US tariffs.
