Canada Will Defend Its Businesses, Says PM Mark Carney After Trump Slaps 35% Tariffs

Last Updated:July 11, 2025, 10:57 IST

Carney’s statement comes amid renewed trade tensions following Trump’s latest protectionist move targeting Canadian exports.

Canada's Prime Minister Mark Carney (IMAGE: Reuters)

Canadian Prime Minister Mark Carney on Thursday responded to US President Donald Trump’s announcement of 35% tariffs on Canadian goods, saying his government’s resolve to stand by domestic industry and maintain strong cross-border cooperation.

“The Canadian government has steadfastly defended our workers and businesses," Carney said in a post, adding that Canada has made critical strides in addressing the fentanyl crisis in North America.

“We remain committed to working with the United States to save lives and protect communities in both our countries," he added.

Carney’s statement comes amid renewed trade tensions following Trump’s latest protectionist move targeting Canadian exports. While the White House has not detailed the full list of affected goods, officials say the tariffs are part of a broader strategy to protect American manufacturing and address trade imbalances.

“Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1. Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries," Carney said in his X post.

More Tariffs for Canada

US President Donald Trump on Thursday announced plans to raise tariffs on a wide range of Canadian imports to 35%, marking a sharp increase from the current 25% rate imposed earlier this year. The move, detailed in a letter addressed to Canadian Prime Minister Mark Carney, signals further strain in US-Canada relations and could destabilise North American trade dynamics in the coming weeks.

Trump justified the tariff hike by citing Canada’s alleged failure to adequately address fentanyl trafficking and longstanding trade imbalances. “The flow of fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff Policies and Trade Barriers," Trump wrote. He has repeatedly claimed that Canada’s trade policies disadvantage American businesses and pointed to the US trade deficit, largely driven by oil imports, as a key concern.

The new tariffs are scheduled to take effect on August 1, setting the stage for a tense month of negotiations and potential retaliatory action. Canada, which remains the US’s second-largest trading partner after Mexico, has already imposed counter-tariffs on American goods and rejected Trump’s earlier provocative remarks about making Canada “the 51st state." While other countries, including Mexico, have also faced steep US tariffs over fentanyl concerns, Trump has singled out Canada with heightened rhetoric and punitive measures.

Markets are bracing for potential fallout, although recent gains in the S&P 500 suggest some investors believe the US may ultimately roll back the increase. For now, the decision injects fresh uncertainty into an already fragile global trade landscape.

News world Canada Will Defend Its Businesses, Says PM Mark Carney After Trump Slaps 35% Tariffs