Canada PM Reacts to Trump’s Tariff Hike

Canadian Prime Minister Mark Carney has expressed strong disapproval of President Donald Trump’s decision to raise tariffs on Canadian goods from 25% to 35%.

In a sharp response on Friday, August 1, 2025, Carney said his government feels “disappointed” by the move.

He added that the tariff hike not only undermines bilateral trust but also punishes Canada unfairly over unrelated geopolitical issues.

Trump issued an executive order enforcing the new tariff.

The U.S. leader accused Ottawa of two key failings: first, recognizing Palestine at the upcoming UN General Assembly in September, and second, failing to fully cooperate on stemming the flow of fentanyl and other illicit drugs into the U.S.

Carney rejected those accusations during his statement in Ottawa.

He stressed that Canada contributes less than one percent of fentanyl entering the United States.

“Canada has ramped up its crackdown on fentanyl and strengthened border controls,” he stated.

Despite the rising tensions, Carney reaffirmed Canada’s loyalty to the Canada-United States-Mexico Agreement (CUSMA).

“We remain committed to CUSMA,” he noted.

“The agreement ensures the average U.S. tariff rate on Canadian goods stays among the lowest globally.”

Still, the new 35% tariff hits hard in sectors outside the free trade scope. Key Canadian industries like lumber, steel, aluminum, and automobiles now face a heavy blow.

Carney acknowledged this economic fallout, stating that Canadian workers and businesses will bear the brunt of the decision.

Although Trump’s order exempts many goods under the 2020 trade agreement, the damage to bilateral trade relations appears significant.

“These tariffs do not reflect the spirit of North American cooperation,” Carney added.

Canada plans to engage its American counterparts diplomatically in the coming weeks.

Officials in Ottawa hope to de-escalate the situation before the new tariffs fully take effect.

For now, trade tensions between Canada and the U.S. have once again flared this time, with fentanyl and foreign policy taking center stage.

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