Canadian Prime Minister Mark Carney announced his disappointment on Friday over President Donald Trump’s decision to impose a 35% tariff on Canadian goods not protected under what is locally referred to as the Canada-United States-Mexico Agreement.
Reports from the White House late Thursday suggest the tariffs were raised due to Canada’s perceived failure to “do more to arrest, seize traffickers, criminals at large, and illicit drugs.” President Trump set a deadline for the conclusion of trade deals with numerous countries, promising to raise tariffs on Canada if no agreement was reached by Friday.
Mark Carney, in his statement, affirmed the Canadian government’s continued commitment to the CUSMA, the world’s second-largest free trade agreement by trading volume. He emphasized that despite the tariff hike, the U.S. average tariff rate on Canadian goods remains one of its lowest among its trading partners. However, he also acknowledged that sectors such as lumber, steel, aluminum, and automobiles would be heavily impacted.
Carney contested the Trump administration’s rationale for the tariff increase, stating that Canada only contributes 1% of U.S. fentanyl imports. Moreover, he highlighted the Canadian government’s efforts in border security, including arresting drug traffickers, dismantling transnational gangs, and halting migrant smuggling. He pledged Canada’s continued cooperation with the United States to stop the fentanyl crisis.
Dominic LeBlanc, Canada’s Trade Minister to the U.S., departed Washington, D.C., on Friday after a deal couldn’t be reached. Despite this, LeBlanc expressed confidence in the strength of Canada’s trade pact with the U.S. and Mexico to mitigate the escalating tariffs. The Bank of Canada projected that up to 95% of Canadian exports might qualify for exemptions under the U.S.-Mexico-Canada, or USMCA, pact. LeBlanc also emphasized Canada’s advantageous position regarding the overall tariff rate on their economy compared to other trading partners.
Carney concluded by asserting that “Canadians will be our own best customer, creating more well-paying careers at home, as we strengthen and diversify our trading partnerships throughout the world. We can give ourselves more than any foreign government can ever take away by building with Canadian workers and by using Canadian resources to benefit all Canadians.”
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