Prime Minister Mark Carney and Ontario Premier Doug Ford are responding after U.S. President Donald Trump signed an executive order to increase tariffs on Canada from 25 to 35 per cent.
The White House announced on Thursday that Trump signed the order with the new tariffs, which will affect all products except for those included in the United States-Mexico-Canada Agreement (USMCA), starting Friday.
The order also adds that goods shipped to a different country in an attempt to avoid tariffs will be subject to a 40-per-cent transshipment tariff.
Earlier last month, Trump published an open letter to Carney threatening to impose tariffs, citing trade barriers and the flow of fentanyl from Canada into the U.S.
Read More
Now, with the new executive order, Trump is once again pointing to the fentanyl crisis as the main reason for the tariffs.
“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,” the White House said in a statement.
Despite the statement, a Government of Canada study published in March revealed that less than 0.1 per cent of the fentanyl seized between 2022 and 2022 in the U.S. came from Canada.
Additionally, Canada has also responded to the concerns by appointing a “fentanyl czar” to reduce the amount of fentanyl crossing the border.
The order also comes a day after Carney announced that Canada would be recognizing Palestine as a State during the 80th Session of the United Nations General Assembly in September.
“Preserving a two-state solution means standing with all people who choose peace over violence or terrorism, and honouring their innate desire for the peaceful co-existence of Israeli and Palestinian states as the only roadmap for a secure and prosperous future,” Carney said in a statement on Wednesday.
Shortly after the announcement, Trump took to social media to say that Canada’s recognition of Palestine would make it “very hard” to negotiate a deal with the U.S.
“Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!” he wrote on Truth Social on Thursday.
CARNEY, FORD REACT TO NEW TARIFFS
After the new tariffs were announced, Carney released a statement saying that Canada is “disappointed” with the move, but will continue to negotiate with the U.S. under CUSMA and to reduce the flow of fentanyl through its borders.
“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,” he wrote in a statement published on X.
The prime minister also said that while sectors under CUSMA remain protected, the new measure could significantly impact sectors such as automobiles, lumber, steel, and aluminum.
“For such sectors, the Canadian government will act to protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversify our export markets,” he added.
The prime minister didn’t clarify whether Canada will be imposing retaliatory measures in response to the new tariffs, and instead said that his government is focused on “building Canada strong,” by reducing trade barriers between the provinces and investing in internal trade.
“We are developing a series of major nation-building projects with provincial, territorial, and Indigenous partners. Together, these initiatives have the potential to catalyze over half a trillion dollars of new investments in Canada.”
Meanwhile, Ford said that the new tariffs are “concerning,” and suggested that the federal government should instead respond with its own tariffs.
“Canada shouldn’t settle for anything less than the right deal. Now is not the time to roll over. We need to stand our ground,” he said on X.
The Ontario premier said that his government will do what it can to support workers in businesses in the main sectors affected.
“We’re building a more competitive, self-reliant and resilient economy by speeding up approvals, building new infrastructure to diversify our trading partners and onshoring every widget we can to fortify home-grown supply chains,” he added.
Online, many Canadians are divided over those who believe Carney made the right choice by continuing to negotiate with Trump and those who think the prime minister should retaliate.
“Thank you for your focus in these trade negotiations, in desiring a deal that benefits Canadians and resisting Trump’s childish dream of annexation. You said it best – nobody can give us more than we Canadians can give ourselves,” one X user wrote in response to Carney.
“I love this. Focus on Canada and Canadians, these are the things we can control,” another person shared on X.
“The U.S. has never truly been an ally of Canada. They tolerated Canada as long as it served their interests, that’s all. It’s time to look elsewhere and get started and as for Trump, he can go to hell,” a different person suggested.
“Again…only words but no action!” another user wrote.
