Canadian Prime Minister Mark Carney delivered a firm response to U.S. President Donald Trump’s sudden decision to hike tariffs on Canadian goods from 25% to 35%, targeting products outside the Canada-United States-Mexico Agreement (CUSMA). While reaffirming Canada’s commitment to the trade pact, Carney made it clear that his government would not stand idle in the face of economic pressure.
Though most Canadian exports remain protected under CUSMA, Carney acknowledged that vital sectors—including lumber, steel, aluminum, and auto manufacturing—are being directly impacted by the tariff escalation. In response, he announced a sweeping strategy to defend Canadian jobs and reduce economic dependence on the United States.
Key initiatives include enhancing internal trade, accelerating “Buy Canadian” policies, investing in industrial competitiveness, and expanding trade ties with global markets. Carney emphasized a shift toward economic diversification, noting that Canada’s future prosperity will not hinge on a single trading partner.
He also pushed back strongly against the U.S. administration’s justification for the tariffs—alleged concerns over fentanyl smuggling. Carney refuted the claim by pointing out that Canada accounts for just 1% of fentanyl entering the U.S., and highlighted the country’s unprecedented investments in border security, aerial surveillance, and counter-narcotics enforcement.
Despite rising tensions, Carney left the door open for continued negotiations with Washington, while redirecting focus to domestic unity and long-term economic strength. He pledged to work collaboratively with provinces, territories, and Indigenous communities to build “one Canadian economy,” capable of attracting over $500 billion in new investments and securing a more self-reliant future for Canada.