Canada PM says he is disappointed as Trump raises tariff to 35%

Canadian Prime Minister Mark Carney said he was disappointed after US President Donald Trump raised the tariffs on Canadian goods to 35% from 25%.

Updated on: Aug 1, 2025, 10:42:56 IST

By HT News Desk

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Canadian Prime Minister Mark Carney said he was disappointed after US President Donald Trump signed an executive order raising the tariffs on Canadian goods to 35% from 25%.

File photo of Canadian Prime Minister Mark Carney and US President Donald Trump. (AFP)

“While the Canadian government is disappointed by this action, we remain committed to CUSMA, which is the world’s second-largest free trade agreement by trading volume,” Carney said in a statement posted on X.

The Canadian prime minister said that while the average tariff rate on Canadian goods remained one of its lowest due to US-Mexico-Canada trade agreement, sectors—including lumber, steel, aluminum, and automobiles—will be heavily impacted by the tariffs.

“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 said.

The response comes after Trump signed an executive order on Thursday increasing tariffs on Canadian goods to 35% from 25% on all products not covered by the US-Mexico-Canada trade agreement.

A White House statement said that goods transshipped to another country to evade the new tariffs will be subject to a transshipment levy of 40%.

The US government said that the increased tariff was the result of Canada's "continued inaction and retaliation." Trump had said that Canadian PM Carney reached out to him ahead of the August 1 deadline, but no conversations two took place between the two leaders.

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