Citing a "national emergency", the U.S. government will impose a higher tariff on Canada starting Friday.
President Donald Trump issued an executive order on Thursday evening, raising the tariff on Canadian goods not covered by the current Canada-US-Mexico Agreement (CUSMA) from 25 per cent to 35 per cent.
In a fact sheet provided by the White House, Trump continued to place blame on illicit drugs and fentanyl entering the U.S. from Canada.
"Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President’s actions to address this unusual and extraordinary threat to the United States," read the fact sheet. "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 emergencyThe Canadian government had hoped to have a trade deal with the U.S. in place by the Friday deadline imposed by Trump.
Prime Minister Mark Carney had last met face-to-face with Trump while in Alberta in mid-June for the G7 Summit. Carney had told reporters that he had hoped to have a trade agreement with the U.S. in place within 30 days.
Since he was elected in March, one of Carney's top priorities was to avoid tariffs that are feared to cause damage to the Canadian economy, while creating an agreement that would repair the rift that had grown between the two allies and neighbours.
Trump also announced on Thursday that he and Mexican President Claudia Sheinbaum agreed to extend their current tariff agreement by 90 days.
