Prime Minister Mark Carney says his government is “disappointed” by the United States’ decision to hike tariffs on Canadian goods from 25 to 35 percent.
The new rate was announced by President Donald Trump through an executive order, citing what he described as Canada’s failure to help curb the illegal flow of fentanyl and its decision to recognise a Palestinian state at the upcoming United Nations General Assembly.
“We are disappointed by this action,” Carney said in a statement released Friday. “Canada accounts for only one percent of US fentanyl imports and has been working intensively to further reduce these volumes.”
Although key products under the United States–Mexico–Canada Agreement (USMCA) remain exempt from the higher rate, other sectors including steel, lumber, aluminium, and vehicles are likely to feel the impact.
Trump’s order accused Canada of “retaliation” against his earlier trade restrictions and claimed Ottawa was “not cooperating” in anti-narcotics efforts.
Carney rejected the claim, defending Canada’s border and drug enforcement policies. “Our government has intensified security measures and remains committed to fair trade. We will continue engaging through diplomatic and legal channels,” he said.
He added that Canada remains committed to the USMCA, despite the latest setback.
“The US average tariff rate on Canadian goods still remains one of the lowest for all of its trading partners under the agreement.”
