Canada's Prime Minister Vows to Protect Workers as US Imposes 35% Tariffs

Strategic Insights -

Canadian Prime Minister Mark Carney has reiterated his commitment to protecting Canadian workers and industries following the US imposition of 35% tariffs on Canadian goods. The move, announced by US President Donald Trump via executive order, raises tariffs from 25% and applies to all Canadian exports not covered by the US-Mexico-Canada trade agreement. This includes sectors such as lumber, steel, aluminium, and automobiles, which will bear the brunt of the increase. The Canadian government has vowed to take action to protect Canadian jobs, invest in industrial competitiveness, and diversify export markets.

Key Takeaways:

  • The US has imposed a 35% tariff on Canadian goods, effective immediately, with a rise from 25% as part of a sweeping tariff package unveiled by President Trump.
  • The tariffs apply to all Canadian exports not covered by the US-Mexico-Canada trade agreement, including lumber, steel, aluminium, and automobiles.
  • The Canadian government has committed to protecting Canadian jobs, investing in industrial competitiveness, and diversifying export markets.
  • A technical delay on most tariffs until August 7 has been introduced, potentially allowing for last-minute deals.
  • Mexico has agreed to scrap non-tariff trade barriers with the US, while continuing to face tariffs of 25% on non-USMCA goods and 50% on steel and aluminium.
  • A US Court of Appeals is holding hearings on the lawfulness of Trump's use of emergency powers to impose broad tariffs.

Statistics:

  • 35%: The new US tariff rate on Canadian goods.
  • 25%: The previous tariff rate on Canadian goods.
  • 15% or more: The duties set for countries with trade surpluses with the US.
  • 39%: The tariff rate imposed on Switzerland.
  • 20%: The tariff rate imposed on Taiwan.
  • 2%: The US tariff rate at the start of the year.
  • 1930s: The last time US tariffs were at their current level.

Sources:

  • Mark Carney (@mark-carney.bsky.social), statement on August 1, 2025.
  • Deutsche Bank strategist Jim Reid, quoted in the article.
  • US President Donald Trump, executive order imposing tariffs.
  • Truth Social, Trump's social media platform, where he warned of the consequences of losing tariff authority.