Canadian Prime Minister Mark Carney expressed his disappointment, as U.S. President Donald Trump announced a tariff increased to 35% for Canadian export.
“President Trump has announced that the United States will increase its tariffs to 35% on those Canadian exports that are not covered under the Canada-United States-Mexico Agreement, or CUSMA,” Carney said in a statement.
“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 trading volume. The U.S. application of CUSMA means that the U.S. average tariff rate on Canadian goods remains one of its lowest for all of its trading partners. Other sectors of our economy – including lumber, steel, aluminum, and automobiles – are, however, heavily impacted by U.S. duties and tariffs. For such sectors, the Canadian government will act to protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversify our export markets.”
The Prime Minister added: “The United States has justified its most recent trade action on the basis of the cross-border flow of fentanyl, despite the fact that Canada accounts for only 1% of U.S. fentanyl imports and has been working intensively to further reduce these volumes. Canada’s government is making historic investments in border security to arrest drug traffickers, take down transnational gangs, and end migrant smuggling. These include thousands of new law enforcement and border security officers, aerial surveillance, intelligence and security operations, and the strongest border legislation in our history. We will continue working with the United States to stop the scourge of fentanyl and save lives in both our countries.”
Carney said while they continue to negotiate with the United States on their trading relationship, the Canadian government is “laser focused” on what they can control.
“Building Canada strong,” the Prime Minister said.
“The federal government, provinces, and territories are working together to cut down trade barriers to build one Canadian economy. We are developing a series of major nation-building projects with provincial, territorial, and Indigenous partners. Together, these initiatives have the potential to catalyse over half a trillion dollars of new investments in Canada.”
Carney added: “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.”
President Trump made the executive order, which can be read in full here, on Thursday, July 31, 2025.
“I have received additional information and recommendations from various senior officials regarding, among other things, Canada’s lack of cooperation in stemming the flood of fentanyl and other illicit drugs across our northern border — including its failure to devote satisfactory resources to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug or human traffickers, criminals at large, and illicit drugs,” the President stated.
“After considering the additional information and recommendations that I have received, among other things, I have determined that, for the products of Canada that are subject to the additional ad valorem rate of duty of 25 percent, the additional ad valorem rate of duty shall increase from 25 percent to 35 percent. In my judgment, this action is necessary and appropriate to deal with the emergency declared.”
Ontario Premier Doug Ford stated Canada shouldn’t settle for anything less than the right deal.
“Now is not the time to roll over,” Ford posted on social media.
“We need to stand our ground.”
The Premier added: “The increase in U.S. tariffs to 35 per cent is concerning, especially with tariffs still in place on steel, aluminum, autos, forestry and now copper. While Canada continues to benefit from zero tariffs on all trade that’s USMCA compliant, representing over 90 per cent of our American exports, we need to do everything in our power to protect workers, businesses and communities from the impact of tariffs. The federal government needs to hit back with a 50 per cent tariff on U.S. steel and aluminum.”
Ford said Canada has what the United States needs: oil and gas, critical minerals, steel and aluminum, electricity, potash and uranium.
“We’re America’s number one customer and keep millions of Americans working,” the Premier wrote.
“The federal government needs to maximize our leverage and stand strong in the face of President Trump’s tariffs. Our government will do whatever is needed to support workers and businesses. We’re building a more competitive, self-reliant and resilient economy by speeding up approvals, building new infrastructure to diversify our trading partners and onshoring every widget we can to fortify home-grown supply chains.”
Canadian workers and businesses are desperate for certainty, Ford added.
“Let’s work together, united, to deliver it.”
