Canada hit with 35% tariffs

Canada was hit with 35% tariffs on Friday after U.S. President Donald Trump followed through on his threat to increase the duties if Ottawa didn’t make a trade deal.

The White House said the tariffs would not affect goods compliant with the Canada–U.S.–Mexico Agreement on trade, commonly known as CUSMA.

Trump signed the executive order Thursday night to slap Canada with the increased duties. A fact sheet from the White House justified the rate change by saying Canada “failed to cooperate in curbing the ongoing flood of fentanyl” and also pointed to Ottawa’s implementation of retaliatory tariffs.

In a statement from Carney released just after midnight, he said the government was disappointed by the actions and said that “Canada accounts for only 1% of U.S. fentanyl imports and has been working intensively to further reduce these volumes.”

He also noted that “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.”

The prime minister added that some industries — including lumber, steel, aluminum and automobiles — will be harder hit, but that the government will try to minimize the impact and protect Canadian jobs.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.