Canada's PM Carney Disappointed as Trump Escalates Tariff War
By Global Leaders Insights Team | Aug 01, 2025
Canadian Prime Minister Mark Carney voiced his frustration after U.S. President Donald Trump signed an order bumping tariffs on Canadian goods from 25% to 35% for items not covered by the U.S.-Mexico-Canada Agreement (USMCA).
This decision, revealed on Thursday, is the latest move in Trump’s ongoing push for higher tariffs, which kicked off soon after he took office. The U.S. claims the tariff hike is partly due to Canada’s failure to stop fentanyl smuggling, but Carney pushed back hard on this.
In a post on X, he pointed out that Canada is responsible for just 1% of fentanyl entering the U.S. and has been working tirelessly to crack down further. “This is a misguided approach that unfairly targets Canadian workers and industries,” Carney said, promising to fight for jobs and keep the economy strong.
- Canada’s PM Mark Carney Slams Trump’s New 35% Tariffs on Canadian Goods
- Tariff War Escalates: U.S. Hikes Canadian Import Duties Amid Fentanyl Dispute
- Carney Defends Canadian Industries as U.S. Tariffs Threaten Jobs and Trade
The tariffs hit hard on major Canadian industries like lumber, steel, aluminum, and cars. These sectors are now facing steeper costs to sell in the U.S., putting jobs and cross-border trade at risk. Carney laid out plans to support these industries, find new markets for Canadian goods, and boost the country’s economic edge. “We will stand up for Canadian workers and ensure our economy remains strong,” he said.
This trade spat is putting a strain on Canada-U.S. ties, already rocky due to Trump’s focus on protectionism. Experts warn it could mess with trade across North America and drive up prices for shoppers in both countries. Canada might consider hitting back with its own measures, though Carney stressed he’d rather talk things out to find a solution.
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The news comes on the heels of Carney’s bold move on July 30 to recognize Palestinian statehood, showing Canada’s willingness to take a stand globally. As this tariff fight heats up, people are watching to see how Canada balances this economic challenge with its role on the world stage.
