On Friday, August 1, 2025, Canadian Prime Minister Mark Carney expressed disappointment over U.S. President Donald Trump’s executive order increasing tariffs on Canadian goods from 25% to 35%, effective August 7, 2025, following a week-long delay. Announced on July 10, 2025, via Trump’s Truth Social platform, the tariff hike was partly linked to Canada’s plan to recognize a Palestinian state at the UN General Assembly in September, alongside claims of Canada’s failure to curb fentanyl inflows and its retaliatory tariffs, per CNN and The Guardian. Carney countered that Canada accounts for only 0.2% of U.S. fentanyl seizures (43 pounds of 21,889 pounds in 2024, per U.S. Customs data), emphasizing intensified border security measures.
Carney noted that goods compliant with the 2020 United States-Mexico-Canada Agreement (USMCA) remain exempt, keeping Canada’s average tariff rate among the lowest for U.S. trading partners. However, sectors like lumber, steel, aluminum (50% tariff), and autos (25% tariff) face significant impacts, with Canada’s $412.7 billion in 2024 U.S. exports at risk, per U.S. Census Bureau data. Ottawa’s earlier retaliatory 25% tariffs on non-USMCA U.S. vehicles and goods like whiskey followed Trump’s March 2025 tariffs. Carney reaffirmed commitment to CUSMA and ongoing trade talks, with Canadian negotiators, led by Foreign Minister Anita Anand, aiming for a deal by August 7, despite Trump’s threat of higher levies if Canada retaliates further. X posts from @CBCNews on July 31, 2025, highlighted Canada’s push for exemptions, while @ReutersCanada noted economic concerns, with Canada’s $63.3 billion trade surplus under pressure.
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