OTTAWA — Prime Minister Mark Carney expressed his disappointment on Friday about
U.S. President Donald Trump’s decision to increase so-called “fentanyl tariffs” to 35 per cent
and said his government is committed to supporting the most affected sectors.
In a “fact sheet” from the White House
, the Trump administration defended its latest action by blaming Canada for reportedly failing to “cooperate in curbing the ongoing flood of fentanyl” and for having retaliated against the U.S. since their original round of tariffs.
However, goods that qualify for “preferential tariff treatment” under the Canada-U.S.-Mexico free trade agreement (CUSMA) continue to remain exempt from tariffs, it said.
“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,”
wrote Carney in a statement on X
published shortly after midnight on Friday.
The prime minister added that the application of CUSMA means that the average tariff rate on Canadian goods going to the U.S. remains one of the lowest for all its trading partners.
However, other sectors of Canada’s economy will remain heavily impacted by tariffs, he said. Steel and aluminum were already subject to 50 per cent tariffs, with copper now impacted by that same rate, but lumber and automobiles are also of great concern.
“For such sectors, the Canadian government will act to protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversity our export markets,” he said.
Carney said despite the U.S. justifying its action on the flow of fentanyl, Canada accounts for only one per cent of U.S. fentanyl imports and “has been working intensively to further reduce these volumes” with “historic” investments for security at the border.
Carney did not announce a new deadline to conclude a new economic and security agreement with the U.S. and rather insisted on making Canada more self-reliant.
“While we will continue to negotiate with the United States on our trading relationship, the Canadian government is laser focused on what we can control: building Canada strong,” he said, pointing to internal trade between provinces and the building of major projects.
“Together, these initiatives have the potential to catalyse over half a trillion dollars of new investments in Canada,” he added.
Carney concluded his statement by saying Canadians will become their own best customers and create “more well-paying careers at home” while the government continues to “strengthen and diversify” its trading partnerships around the world.
“We can give ourselves more than any foreign government can ever take away by building with Canadian workers and by using Canadian resources to benefit all Canadians.”
According to the Canadian Press, Trump said on Thursday he had not “spoken to Canada” but referenced that “he’s called”— suggesting Carney may have reached out hours before the tariff increase.
That is exactly what U.S. Secretary of Commerce Howard Lutnick suggested Carney do hours before in an interview with FOX News to stop the increase to 35 per cent.
“If he makes that call and if he starts turning on the charm, and if he takes off his retaliation… it stops the silliness. Maybe the president will let it down a bit,” he said.
It remains to be seen if Canada will retaliate further. Back in March, the federal government imposed $30 billion in tariffs on U.S. goods such as orange juice, wine, spirits and appliances. It also imposed 25 per cent tariffs on U.S. steel and aluminum, and on automobiles.
Lutnick pointed out that Canada was one of two countries in the world — with China — to have retaliated against the U.S.
In a post on X, Ontario Premier Doug Ford said the federal government should “hit back” with a 50 per cent tariff on U.S. steel and aluminum.
“Now is not the time to roll over. We need to stand our ground,” he said.
But Brian Clow, who served as former prime minister Justin Trudeau’s deputy chief of staff and his executive director of Canada-U.S. relations, said other countries’ refusal to stand up to Trump’s actions “emboldened” him and has put Canada in a difficult position.
“Although generally, I’ve been a fan of retaliation, and I think the world should have stood up to this President, I’m not sure it makes sense for Canada to be strongly retaliating all on its own when the rest of the world is caving,” he said in a recent interview.
“We might just find ourselves on the receiving end of even more punishment from this president.”
National Post
calevesque@postmedia.com
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