U.S. President Donald Trump has signed an executive order imposing a 35 per cent tariff on Canadian goods, set to take effect Friday. The sweeping tariff hike marks a significant escalation in trade tensions between the two countries.
The White House clarified that the new tariffs will not apply to goods that comply with the Canada-U.S.-Mexico Agreement (CUSMA), which governs trade relations among the three nations. However, a fact sheet accompanying the announcement accused Canada of failing to adequately cooperate in controlling the flow of fentanyl and criticized Ottawa’s retaliatory tariff measures.
Despite U.S. claims, federal data indicates that only a small fraction of fentanyl seizures occur at the Canada-U.S. border, with the vast majority coming through Mexico.
The announcement comes amid stalled trade talks, with Canadian officials signaling that a new deal was unlikely ahead of Trump’s self-imposed deadline. Prime Minister Mark Carney reaffirmed that any agreement must be in Canada’s best interest. Trump, for his part, admitted earlier in the day that he had not spoken to Canadian officials.