Carney ‘disappointed’ in Trump’s 35% tariff on Canada
Global News
Prime Minister Mark Carney said the federal government is 'disappointed' by the 35 per cent tariff, but said it's committed to CUSMA.
Prime Minister Mark Carney says he is “disappointed” by U.S. President Donald Trump’s imposition of a 35 per cent tariff on Canada but that even with that move, Canada still faces among the lowest average tariff rates of U.S. trading partners because of CUSMA.
“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 wrote in a letter posted on X early Friday.
“The U.S. application of CUSMA means that the U.S. average tariff rate on Canadian goods remains one of its lowest for all of its trading partners.”
Carney cautioned that other sectors remain heavily impacted due to industry-specific tariffs, including on lumber, steel, aluminum and automobiles.
“For such sectors, the Canadian government will act to protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversify our export markets,” Carney wrote.
The letter was posted just hours after Trump signed an executive order that would raise his tariffs on Canada to 35 per cent starting midnight Friday.
The White House confirmed that goods under the Canada-U.S.-Mexico agreement (CUSMA) on free trade will remain exempt from the higher tariff.
The White House added that goods transshipped through other countries to avoid the 35 per cent tariff will instead be charged a tariff of 40 per cent.
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