Canada PM ‘disappointed’ as Trump orders tariff hike

U.S. President Donald Trump on Thursday (July 31) signed an executive order increasing tariffs on Canadian goods to 35% from 25% on all products not covered by the U.S.-Mexico-Canada trade agreement, the White House said, Reuters reports.

Goods transshipped to another country to evade the new tariffs would be subject to a transshipment levy of 40%, according to a White House fact sheet.

The move – which Washington linked in part to what it said was Canada’s failure to stop fentanyl smuggling – is the latest blow in a months-long tariff war which Trump initiated shortly after taking power.

The announcement blaming Canada’s “continued inaction and retaliation” comes after Trump said Canadian Prime Minister Mark Carney reached out ahead of an August 1 tariff deadline, but no conversations between the two took place.

Trump had said any country failing to strike a deal with the U.S. before Friday will be subjected to higher tariffs imposed on goods.

Carney on Friday (August 1) said he was disappointed by Trump’s decision.

U.S. duties and tariffs will heavily affect lumber, steel, aluminum, and automobiles, Carney said in a post on X, vowing action to protect Canadian jobs, buy its goods, invest in industrial competitiveness and diversify export markets.

“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.”