Canada ‘disappointed’ as Trump hikes tariffs over Palestine, fentanyl concerns

Canadian Prime Minister Mark Carney has expressed disappointment over a new decision by former U.S. President Donald Trump to raise tariffs on Canadian imports from 25 percent to 35 percent.

The tariff hike, announced via executive order on Friday, follows Canada’s recent declaration that it would recognise a Palestinian state at the United Nations General Assembly in September — a move that drew sharp criticism from Trump.

While many goods covered under the 2020 United States-Mexico-Canada Agreement (USMCA) remain exempt, the increased tariffs are expected to affect key sectors of the Canadian economy.

“The Canadian government is disappointed by this action,” Carney said in a statement, adding that Canada remains committed to the trade agreement and to maintaining strong bilateral relations with the United States.

Trump justified the move by accusing Ottawa of failing to adequately stem the flow of fentanyl and other illicit drugs into the U.S., and cited Canada’s alleged retaliatory stance on his earlier policies.

Carney pushed back on the claims, noting that Canada accounts for only about one percent of U.S. fentanyl imports and has stepped up efforts to combat the trade.

“Canada has been working intensively to further reduce these volumes and enhance border security,” he said.

Despite the new tariffs, Carney reaffirmed Canada’s commitment to the USMCA, noting that it continues to provide one of the lowest average U.S. tariff rates for any trading partner.

However, he acknowledged that certain sectors — particularly lumber, steel, aluminum, and automobiles — remain vulnerable to U.S. duties.

“These sectors of our economy are heavily impacted by American trade measures,” Carney said, warning of broader economic consequences if tensions continue to rise.