• Canada's PM Mark Carney is "disappointed" by new US tariffs raised to 35%.
• The tariff increase affects Canadian goods not covered by CUSMA.
• Carney emphasizes Canada's efforts to combat fentanyl trafficking.

Canadian Prime Minister Mark Carney expressed his government’s disappointment over US President Donald Trump's decision to increase tariffs on Canadian goods to 35%, up from 25%, effective August 1. This move follows Carney's announcement regarding plans to recognize a Palestinian state at the UN, an action Trump cited as part of the reason for the tariffs. Carney emphasized that Canada only contributes 1% of fentanyl imports into the US, and stated, "Canada accounts for only one percent of US fentanyl imports and has been working intensively to further reduce these volumes," according to Le Monde and AA.

Carney reiterated Canada's commitment to the Canada-United States-Mexico Agreement (CUSMA), describing it as maintaining one of the lowest average tariff rates among US trading partners. However, he cautioned that other sectors of the economy, such as lumber and automobiles, would be significantly impacted by these duties. He noted that Canada's government is making "historic" investments in border security to combat issues like drug trafficking, which were cited as justifications for the tariffs, according to The Hill and Le Monde.

Despite the challenges posed by the tariff increase, Carney signaled a potential openness to negotiation: "While we will continue to negotiate with the United States on our trading relationship, the Canadian government is laser focused on what we can control," he stated. This reflects Canada's ongoing efforts to protect its industries and jobs amidst heightened tensions in trade policies, according to The Hill and AA.