Canada PM says he is disappointed as Trump orders tariff hike

Canadian Prime Minister Mark Carney said he was disappointed after US President Donald Trump signed an executive order to raise tariffs on Canadian goods to 35% from 25% on products outside the scope of the U.S.-Mexico-Canada trade agreement.

AI Brief

The US imposed new tariffs on Canadian goods, linking the move partly to fentanyl smuggling concerns.
Canada criticised the justification, noting its minimal role in US fentanyl imports and ongoing efforts to reduce them.
Canadian officials pledged to protect jobs, boost domestic industry, and expand exports to other markets.

The move, which Washington linked in part to what it said was Canada's failure to stop fentanyl smuggling, is the latest salvo in Trump's months-long tariff war initiated soon after taking power.

US duties and tariffs will heavily affect lumber, steel, aluminum, and automobiles, Carney said in a post on X, vowing action to protect Canadian jobs, buy its goods, invest in industrial competitiveness and diversify export markets.

To justify its step, the U.S. has cited the cross-border flow of fentanyl, even though Canada accounts for just 1% of U.S. fentanyl imports and has been working intensively to further reduce the volumes, Carney added.