Tariff Tensions: U.S. And Canada In Economic Crossfire

Canadian Prime Minister Mark Carney expressed dissatisfaction with U.S. President Donald Trump's decision to raise tariffs on Canadian goods from 25% to 35%. The executive order targets products outside the U.S.-Mexico-Canada trade agreement.

The U.S. administration partly justified the tariff hike by accusing Canada of not adequately controlling the flow of fentanyl across the border, despite Canada only contributing to 1% of U.S. fentanyl imports. Carney noted his government's efforts to further reduce these volumes.

The increased tariffs are expected to significantly impact Canada's lumber, steel, aluminum, and automobile sectors. In response, Carney vowed to protect Canadian jobs, promote local goods, enhance industrial competitiveness, and diversify export markets.

(With inputs from agencies.)