Canadian Prime Minister Mark Carney on Friday expressed disappointment over the United States’ decision to raise tariffs on Canadian goods from 25% to 35% but reaffirmed Canada’s commitment to the Canada–United States–Mexico Agreement (CUSMA).

The tariff hike, signed into effect by President Donald Trump on Thursday, targets Canadian exports not covered under CUSMA. A White House statement cited “continued inaction and retaliation” by Canada and invoked national emergency measures. A 40% transshipment levy will also apply to goods rerouted through third countries to evade tariffs.

In a statement on social media, Prime Minister Carney emphasized Canada’s dedication to the trilateral trade pact: “While we are disappointed by this action, we remain committed to CUSMA, which remains the world’s second-largest trade agreement by volume.”

Carney noted that despite the new tariffs, CUSMA still ensures one of the lowest average U.S. tariff rates for Canadian goods. However, sectors such as lumber, steel, aluminum, and automobiles remain heavily impacted.

He pledged government support for affected industries through measures to protect jobs, strengthen industrial competitiveness, and diversify exports.

Addressing the U.S. justification linking the move to cross-border fentanyl trafficking, Carney refuted the claim, stating that Canada accounts for only 1% of U.S. fentanyl imports. He highlighted Canada’s significant investments in border security, including thousands of new officers, surveillance systems, and legislative reforms.

Carney concluded by reaffirming Canada’s focus on domestic economic resilience. “We’re building a stronger Canadian economy—cutting internal trade barriers, developing nation-building projects, and investing in Canadian workers and industries.”