Prime Minister Mark Carney issued a statement shortly after midnight on Friday in response to U.S. President Donald Trump’s executive order to raise tariffs on Canadian goods to 35 per cent. The statement emphasized Canada’s commitment to the Canada-U.S.-Mexico Agreement, highlighting that while the U.S. average tariff rate on Canadian goods under CUSMA remains relatively low compared to other trading partners, sectors like lumber, steel, aluminum, and automobiles face significant impacts from U.S. tariffs.
Carney pledged that the Canadian government would take steps to safeguard Canadian jobs, boost industrial competitiveness, support domestic purchases, and explore new export markets. Despite most of Canada’s exports still entering the U.S. duty-free, Trump’s executive order increased the tariff rate from 25 to 35 per cent effective immediately.
The order was driven by concerns about Canada’s alleged lack of cooperation in combating illicit drug trafficking and perceived retaliatory actions. Carney’s statement highlighted Canada’s efforts to tackle drug trafficking and enhance border security, including significant investments in law enforcement, surveillance, and intelligence operations.
Amid ongoing negotiations, Trump expressed openness to further discussions with Canada, indicating a potential conversation with Carney. The Canadian trade team in Washington remained tight-lipped about their meetings, as Trump extended Mexico’s tariff regime deadline despite previous threats.
Conservative Leader Pierre Poilievre criticized the tariffs as unjustified, advocating for a comprehensive deal to eliminate all tariffs on various Canadian exports. Ontario Premier Doug Ford echoed concerns over the tariff increase and urged a strong stance in negotiations. Union leader Lana Payne emphasized the importance of fighting for Canadian workers amid escalating trade tensions.
While uncertainties loom over the trade negotiations, Canadian officials remain optimistic, emphasizing the need for a balanced agreement. White House officials signaled impending tariff increases if deals were not reached by the deadline, with Commerce Secretary Howard Lutnick criticizing Canada’s retaliatory stance.
Trump’s tariff measures extended to other global partners, with threats of significant tariffs if agreements were not reached. Legal challenges to the tariffs, particularly the 35 per cent levy on Canadian goods, have escalated to federal appeals court, reflecting the contentious nature of the trade dispute.