By M10News Political Desk|Sola Adeniji|1, August 2025
Canadian Prime Minister Mark Carney has criticised President Donald Trump’s decision to raise tariffs on Canadian goods to 35%, calling the move “disappointing” and warning of economic strain on key industries.
The US president issued an executive order on Friday increasing levies on select Canadian imports, escalating tensions just weeks after Ottawa announced its intention to recognise a Palestinian state at the United Nations General Assembly in September.
Trump had earlier signalled that Canada could face “trade consequences” over the diplomatic decision. The new tariff rate replaces a previous 25% duty, though many goods covered by the 2020 United States-Mexico-Canada Agreement (USMCA or CUSMA) remain exempt.
In a written statement, Carney said: “The Canadian government is disappointed by this action,” adding that Ottawa remains committed to “constructive engagement with our closest ally.”
The White House said the tariff hike was justified by what it described as Canada’s “failure to cooperate” in reducing the flow of fentanyl and other illicit drugs into the United States, along with its response to previous US trade measures.
Carney rejected that characterisation, saying Canada had taken “intensive steps” to combat fentanyl trafficking and improve border enforcement.
“Canada accounts for only one percent of US fentanyl imports and has been working intensively to further reduce these volumes,” the prime minister said.
Despite the escalation, Carney reaffirmed Canada’s commitment to the CUSMA trade agreement, calling it a “pillar of North American economic stability.”
“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,” he added.
However, he acknowledged that critical sectors including lumber, steel, aluminium and automobiles are still subject to significant US duties.
The tariff hike could affect billions in cross-border trade, with analysts warning of potential ripple effects in both economies.
Ottawa has not announced any immediate retaliatory measures but said it is reviewing its options.
Editing by M10News Political Desk | Contact: politics@m10news.com
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