Ottawa: Canada has expressed its disappointment over the 35% additional tariff imposed by US President Donald Trump on Canadian products. Canadian Prime Minister Mark Carney issued a statement on Friday conveying this sentiment.
The tariff rate, previously at 25%, has been increased to 35%. The Trump administration has taken this action, alleging that Canada has failed to curb illegal drug trafficking. The US claims that Canada has not cooperated in controlling the flow of drugs like fentanyl. However, Carney clarified that only one percent of fentanyl smuggled into the US originates from Canada, and that his government is actively working to reduce these volumes.
Trump’s measure will primarily impact products not covered under the Canada-U.S.-Mexico Agreement (USMCA). Carney stated that industries such as lumber, steel, aluminum, and automobiles will be significantly affected by these duties and tariffs. He added that the Canadian government will work to protect Canadian jobs, enhance industrial competitiveness, and diversify export markets.
Trump had previously warned that trade agreements must be finalized by August 1. The executive order was signed just hours before this deadline. While Trump had initially suggested that Canada’s move to recognize a Palestinian state could complicate trade talks, he later stated it would not be a deal-breaker.
Bilateral trade between Canada and the US amounted to $76.21 billion in 2024. Approximately 75% of Canada’s total exports go to the US. Therefore, this tariff increase is expected to pose a significant challenge to the Canadian economy.
