Trump Hits Canada with 35% Tariff — Carney Says “Disappointing” But Vows to Defend Jobs

Well, well, well. Donald Trump just dusted off his tariff playbook — and Canada’s the latest target in his economic firing line.

On August 1st, the former U.S. president issued an executive order jacking up tariffs on Canadian exports not covered by the U.S.–Mexico–Canada Agreement (CUSMA) from 25% to a scorching 35%, effective immediately. And if Canadian businesses think they can get slick rerouting goods through another country? Think again.

There’s a 40% penalty waiting on the other side.

This is all part of Trump’s new “America First, Everybody Else Pays” strategy — allegedly to pressure Canada over fentanyl trafficking. Yep. The U.S. blames Canada for a drug crisis that their own border patrol and pharma lobby helped create, even though we account for a measly 1% of their fentanyl imports. But hey — why let facts get in the way of a good old-fashioned tariff tantrum?

Canada Takes the Hit

Countries like Mexico, the EU, and several Asian nations managed to negotiate softer terms — but not Canada. We got the full 35% bruiser. No warning, no grace period, just economic whiplash.

And here’s the kicker: 15% of our exports fall outside CUSMA, meaning a huge chunk of businesses — especially in lumber, steel, aluminum, and automotive sectors — just woke up to a financial gut punch.

Carney’s Response: Chill, But Not Cold

Prime Minister Mark Carney didn’t go nuclear. Instead, he called the move “deeply disappointing” — a diplomatic way of saying “We see you, Donnie.”

Carney isn’t throwing hands just yet, but he made it clear Canada won’t sit quietly while workers pay the price. He’s promised a pivot:

• Protect Canadian jobs through government investment
• Push a stronger Buy Canadian campaign
• Accelerate export diversification to reduce reliance on our increasingly petty neighbor

On the fentanyl front, Carney reminded the U.S. that Canada’s not only pulling its weight — we’re also not the problem.

Bigger Picture: The Trade War’s New Season

This drama didn’t start yesterday. Back in March 2025, Trump kicked off the tariff war with a 25% hit on Canadian exports. Carney clapped back then, saying Canada could no longer rely on the U.S. as a stable trading partner.

Fast-forward to August, and things are escalating fast. While other nations negotiated, Canada got iced out. Why? Because Carney won’t play puppet. Because we dared to push back.

Now, with over 75% of our exports still headed to the U.S., this is less a trade dispute and more a question of economic sovereignty. Ontario Premier Doug Ford wants to clap back with a 50% counter-tariff on American metals. Others are urging caution, fearing a scorched-earth trade war.

Business groups and economists say: breathe. Don’t retaliate in rage. Instead, build — new trade deals, homegrown industry, infrastructure, and resilience.

My Final Word:

Let’s be real — Trump’s tariffs aren’t about fentanyl. They’re about flexing muscle and forcing Canada to the table on his terms. Carney’s strategy? Less brawl, more build. He’s betting on long-term strength over short-term fire.

But make no mistake: this is a test. Of leadership. Of economic foresight. And of how Canada defines itself in a global economy where alliances can flip overnight.

The question now: Do we fold and beg for a deal? Or stand our ground and build a new game?

Stay tuned. The stakes just got real.