Canada PM Expresses Disappointment Over New US Tariffs

Prime Minister Mark Carney said Friday his government is “disappointed” by President Donald Trump’s decision to raise tariffs on Canadian goods from 25 percent to 35 percent.

The tariff increase comes after Carney announced Canada’s plans to recognize a Palestinian state at the UN General Assembly in September — a move that prompted warnings from Trump about possible trade consequences for Ottawa.

Although a broad range of products under the 2020 United States-Mexico-Canada Agreement (CUSMA) are still exempt, the new tariff will impact several key Canadian exports.

In a statement, Carney responded: “The Canadian government is disappointed by this action.”

Trump’s executive order justified the tariff hike by citing Canada’s “failure to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs” and accused Ottawa of “retaliation” against his policies.

Carney defended his government’s record on drug enforcement and border control efforts.

“Canada accounts for only one percent of US fentanyl imports and has been working intensively to further reduce these volumes,” he said.

He also emphasized Canada’s ongoing support for CUSMA: “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 industries are being hit hard.

“Other sectors of our economy—including lumber, steel, aluminium, and automobiles—are, however, heavily impacted by US duties and tariffs,” he said.