Canadian PM Carney Disappointed President Trump Orders Tariff Increase

JAKARTA - Canadian Prime Minister Mark Carney said he was disappointed after US President Donald Trump signed an executive order to raise Canadian goods rates for products beyond the scope of the United States - Mexico - Canada trade agreement.

The move, in part attributed to Washington to what it calls Canada's failure to stop fentanyl smuggling, is the latest attack on President Trump's tariff war that has lasted months, which began soon after he came to power.

US imports and tariffs will greatly affect wood, steel, aluminum, and cars, PM Carney said in a post on X, pledging to take action to protect Canadian jobs, buy his belongings, invest in industrial competitiveness, and diversify the export market.

To justify his move, the US has cited cross-border fentanyl flows, although Canada accounts for only 1 percent of US fentanyl imports and has worked intensively to further reduce the volume, PM Carney added.

As previously reported, the White House announced that President Donald Trump signed an executive order on Thursday which raised Canadian goods rates from 25 percent to 35 percent. The new tariff will take effect on August 1.

"In response to Canada's continued indifference and countermeasures, President Trump feels the need to raise Canadian rates from 25 percent to 35 percent to tackle existing emergencies effectively," the White House said.

President Trump intensified a trade war with Canada a day before the August 1 deadline, saying it would be "very difficult" to reach an agreement with Canada following support for Palestine.

"Wow! Canada has just announced its support for the Palestinian state. It will make it very difficult for us to reach a Trade Agreement with them," Trump's President at Truth Social said.

Canadian Prime Minister Mark Carney previously said tariff negotiations with Washington were constructive, but the negotiations may not be completed before the deadline.

Negotiations between the two countries are in an intense phase, he added, but the deal to remove all US rates seems unlikely.

Canada is the second largest trading partner in the US after Mexico, and the largest US export buyer. Canada bought US goods worth USD 349.4 billion last year and exported USD 412.7 billion to Uncle Sam's country, according to US Census Bureau data.

Canada is also the main supplier of steel and aluminum to the United States, and faces tariffs for both metals and vehicle exports.

Last month, PM Carney's administration canceled a digital service tax plan targeting US tech companies, after Trump suddenly canceled trade negotiations saying the tax was a "discriminate attack."