Canadian Prime Minister Mark Carney expressed disappointment Friday following President Trump’s decision to raise tariffs on Canadian goods to 35 percent. However, he signaled that a potential trade agreement could still be on the table.
Trump’s decision came after prolonged talks with Canada and accompanied a broader tariff escalation unveiled Thursday. He once again cited a “flood” of fentanyl from the northern border as justification—a claim not supported by data from U.S. Customs and Border Protection. Trump also criticized Carney’s move to recognize a Palestinian state, calling it a factor that hindered negotiations.
In a statement, Carney responded that Canada is responsible for just 1 percent of fentanyl entering the U.S. and emphasized ongoing efforts to further cut that figure.
“Canada’s government is making historic investments in border security to arrest drug traffickers, take down transnational gangs, and end migrant smuggling,” Carney said. “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.”
Trump’s new tariff structure will not apply to goods manufactured mainly in Canada, thanks to provisions in the U.S.-Mexico-Canada Agreement negotiated during his first term. Carney noted that this exemption helps maintain one of the lowest overall tariff rates among Canada’s trading partners.
Still, he warned that key sectors like lumber, steel, aluminum, and automotive manufacturing could face significant disruption, and said the Canadian government would consider countermeasures.
“For such sectors, the Canadian government will act to protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversify our export markets,” he wrote.
In March, Canada imposed retaliatory tariffs in response to Trump’s earlier proposal of a 25 percent levy on steel and aluminum—two vital Canadian exports. Carney acknowledged that changing U.S. policy may be out of his control.
“While we will continue to negotiate with the United States on our trading relationship, the Canadian government is laser focused on what we can control: building Canada strong,” he concluded.
