Canada disappointed as Donald Trump hikes tariffs on Canadian goods to 35%
The move applies to all Canadian products not covered under the US-Mexico-Canada Agreement (CUSMA)
PTC Web Desk: Canadian Prime Minister Mark Carney expressed disappointment after US President Donald Trump signed an executive order raising tariffs on Canadian goods from 25% to 35%. The move, announced Thursday, applies to all Canadian products not covered under the US-Mexico-Canada Agreement (CUSMA).
In a statement shared on social platform X, Carney said, “While the Canadian government is disappointed by this action, we remain committed to CUSMA, which is the world’s second-largest free trade agreement by trade volume.”
Despite the tariff hike, Carney pointed out that average duties on Canadian exports remain relatively low thanks to the trilateral pact. However, he acknowledged that key sectors, including lumber, steel, aluminum, and automobiles, will feel the impact of the new tariffs.
“To protect Canadian jobs and our industrial base, our government will take action, whether by investing in competitiveness, promoting 'Buy Canadian' initiatives, or expanding into new export markets,” he added.
US accuses Canada of 'inaction and retaliation'
The White House stated that the tariff increase was prompted by what it called Canada’s “continued inaction and retaliation” in recent trade matters. The new measure also includes a 40% transshipment levy on goods routed through third countries in an attempt to bypass the tariff.
President Trump claimed that Prime Minister Carney attempted to reach out before the August 1 deadline, but insisted that no communication took place between the two leaders.