Ottawa (Ontario), Aug 1 Hours after US President Donald Trump signed an executive order on Thursday raising tariffs from August 1 on Canadian goods to 35 per cent from 25 per cent earlier, Canada on Friday stated that “while the Canadian government was disappointed by this action", the nation "remained committed to CUSMA.”
The tariff hike by the Trump Administration essentially targeted all products not covered under the US-Mexico-Canada trade agreement CUSMA.
Earlier on Thursday, a statement by the White House said, "In response to Canada's continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25 per cent to 35 per cent, to effectively address the existing emergency."
A 40 per cent transshipment levy will apply to goods rerouted through third countries to bypass the tariffs, a White House fact sheet revealed.
The Trump Administration’s move follows what it described as Canada's "continued inaction and retaliation," prompting the increase ahead of the August 1 tariff deadline.
Reacting to the announcement in an official statement on social media platform X, Canadian Prime Minister Mark Carney stated, “President Trump has announced that the United States will increase its tariffs to 35 per cent on Canadian exports that are not covered under the Canada-United States-Mexico Agreement CUSMA. While the Canadian government is disappointed by this action, we remain committed to CUSMA, which is the world's second-largest free trade agreement by trading volume.”
“The U.S. application of CUSMA means that the U.S. average tariff rate on Canadian goods remains one of its lowest for all of its trading partners. Other sectors of our economy, including lumber, steel, aluminum, and automobiles are, however, heavily impacted by U.S. duties and tariffs,” it stated.
“For such sectors, the Canadian government will act to protect Canadian jobs, invest in industrial competitiveness, buy Canadian, and diversify our export markets,” the PM promised.
“The United States has justified its most recent trade action on basis of the cross-border flow of fentanyl, despite the fact that Canada accounts for only 1 per cent of U.S. fentanyl imports and we have been working intensively to further reduce these volumes.
“Canada's government is making historic investments in border security to arrest drug traffickers, take down transnational gangs and end immigrant smuggling. These include thousands of new law enforcement and border security officers, aerial surveillance, intelligence and security operations, and the strongest border legislation in our history.
“We will continue working with the United States to stop the scourge of fentanyl and save lives in both our countries,” PM Carney said in his post.
“While we will continue to negotiate with the United States on our trading relationship, Canadian government is laser focussed on what we can control: Building Canada strong.
“Federal government, provinces and territories are working together to cut down trade barriers and build one Canadian economy. We are developing a series of major nation-building projects provincial, territorial, and Indigenous partners. Together, these initiatives have the potential to catalyse over half a trillion dollars of new investments in Canada.
“Canadians will be our own best customers, creating more well-paying careers at home, as we strengthen and diversify our trading partnerships throughout the world. We can give ourselves more than any foreign government can ever take away, by building with Canadian workers and using Canadian resources to benefit all Canadians,” the post concluded.
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