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The two countries have not yet reached a trade agreement.
The two countries have not yet reached a trade agreement.
What is happening?
It’s August 1st 2025, and the US and Canada have not reached a new trade deal yet.
This means that the US tariffs on Canadian exports are now in effect.
Carney reacts
In response to the tariffs, Canadian Prime Minister Mark Carney has released a statement on the situation.
Spoiler alert: He is disappointed.
35% tariffs
Carney starts his statement, which was released on his X-profile, with summing up that Donald Trump has increased tariffs on Canadian exports not covered by the Canada-United States-Mecixo Agreement (CUSMA).
He makes it clear, that the Canadian government is disappointed, but remains commited to CUSMA, which, according to Carney, is the world’s second-largest free trade agreement when measured by volume.
A light in the dark
Carney points out that the US application of CUSMA means that the US average tariff on Canadian goods remains on of the lowest for all of the United States trading partners.
But Carney warns that other sectors of Canadian economy will be heavily impacted.
Lumber, steel, aluminium, cars
The four sectors lumber, steel, aluminium and cars will suffer heavily under the US imposed tariffs and duties, Carney warns.
But he makes it clear that the Canadian Government will “act to protect Canadian jobs, invest in our industrial competitevness, buy Canadian and diversify our export markets”.
Slams US justification
Carney then goes on to point to the US justification for the imposed tariffs: The cross-border flow of fentanyl.
Carney claims that only 1% of fentanyl being importet into the US comes from Canada, and that the Canadian authorities have taken measures to further reduce that number.
Thousands of new officers
The massive investments in border security made by the Canadian Government includes the hiring of thousands of new border security officers, aerial surveillance, intelligence and other security operations.
Carney makes it clear that Canada will keep working with the United States to stop the “scourge of fentanyl”.
Continues negotiations
The two neighbours have not yet reached a trade agreement, but the negotiations continue, Carney promises.
That being said, the Canadian Government is also focusing on strengthening Canada by cutting down other trade barriers for Canadian economy.
Our own best costumer
Carney finishes his statement by pointing to the fact, that Canadians will be Canada’s own best costumers, helping creating new jobs in the North American country.
