Canada Expresses Disappointment as US Hikes Tariffs to 35% on Canadian Goods
- Posted on August 1, 2025
- Trending News
- By Arijit Dutta
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Canada’s Prime Minister Mark Carney expressed disappointment after US President Donald Trump raised tariffs on Canadian goods to 35%. The move adds pressure to US-Canada trade ties, affecting key sectors like lumber and dairy. Canadian officials are reviewing responses but have yet to confirm any retaliatory action.

Canadian Prime Minister Mark Carney voiced his disappointment on Friday following a fresh tariff hike imposed by US President Donald Trump. The new executive order raises tariffs on Canadian exports from 25% to 35%, escalating trade tensions between the two North American neighbours.
Carney’s response came shortly after the White House confirmed the updated tariff rate as part of a broader recalibration of the US’s trade policy aimed at narrowing its trade deficit and reinforcing domestic manufacturing. The Canadian leader said he was "deeply disappointed" by the unilateral move, which he described as counterproductive for both economies.
The tariff increase comes at a time when Canada and the US have been engaged in delicate negotiations to revise trade terms under Trump’s aggressive economic agenda. Ottawa has so far refrained from announcing any retaliatory measures, but officials hinted that options are being reviewed.
The move is also likely to affect key sectors such as lumber, dairy, and automotive parts, which form a significant portion of Canada’s exports to the United States. Industry representatives in Canada have already raised concerns over the ripple effects the hike could trigger across supply chains, jobs, and pricing.
In a brief statement, Trump justified the increase as necessary to “balance the scales” with countries that, in his view, benefit disproportionately from trade with the US. However, no specific examples were given regarding how Canada’s exports posed a disadvantage to American interests.
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While Canada remains committed to dialogue, Carney reiterated the importance of stable and fair trade practices. The new tariff decision, analysts say, could place further strain on US-Canada relations at a time when global economic uncertainty calls for stronger cooperation, not division.