Trump signs executive order pushing tariffs on Canada to 35 per cent

U.S. President Donald Trump signed an executive order Thursday evening increasing tariffs on Canada from 25 to 35 per cent starting Friday.

A statement from The White House reads that Canada had failed to cooperate in curbing the ongoing flood of fentanyl and other drugs into the United States.

It further reads that in response to Canada’s “continued inaction and retaliation,” Trump found it necessary to increase the tariffs on Canada to “effectively address the existing emergency.”

The White House confirmed the tariffs would not hit goods compliant with the Canada-U.S.-Mexico Agreement on trade, commonly known as CUSMA.

Further, goods that are transshipped to dodge the 35 per cent tariff will be subject to a transshipment tariff of 40 per cent instead.

U.S. government data shows a miniscule amount of fentanyl is seized at the border with Canada compared to Mexico.

Canadian officials had been tempering expectations that a trade deal would materialize ahead of Trump’s deadline and Prime Minister Mark Carney has said he’ll only make an agreement that is good for Canada.

With files from the Canadian Press.

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