Ottawa (Rajeev Sharma): Canadian Prime Minister Mark Carney has issued a strong and measured response after U.S. President Donald Trump announced a sharp increase in tariffs on Canadian goods not covered by the Canada-United States-Mexico Agreement (CUSMA). The new 35% tariff, up from 25%, is set to take effect immediately, targeting a broad range of exports outside the trade deal.
In an official statement released today, Prime Minister Carney expressed disappointment over the U.S. decision but reaffirmed Canada’s commitment to CUSMA, which he called “the world’s second-largest free trade agreement by trading volume.”
Carney emphasized that while many Canadian exports remain relatively unaffected due to the CUSMA framework, critical sectors such as lumber, steel, aluminum, and automobiles are still exposed to US duties. He pledged that the federal government will act decisively to “protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversify our export markets.”
The U.S. has justified the tariff hike by citing Canada’s alleged role in fentanyl trafficking, despite Canada accounting for just 1% of fentanyl imports into the U.S. Carney pushed back against this rationale, highlighting Canada’s “historic investments in border security” to combat drug trafficking, gang activity, and illegal migration. These efforts, he said, include new law enforcement deployments, aerial surveillance, and the country’s strongest-ever border security legislation.
While maintaining that Canada will continue negotiations with the US, the Prime Minister made it clear that the government’s primary focus is on building economic strength at home. “The Canadian government is laser focused on what we can control: building Canada strong,” he said, announcing a sweeping series of nation-building initiatives in partnership with provinces, territories, and Indigenous communities.
Carney underscored a call for national unity in the face of international trade uncertainty: “Canadians will be our own best customer,” he declared, “creating more well-paying careers at home, as we strengthen and diversify our trading partnerships throughout the world.”
With over half a trillion dollars in new investments expected through these initiatives, the Prime Minister portrayed the moment as a critical test of Canada’s independence and self-reliance.
“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,” Carney concluded.
