Carney ‘disappointed’ as Trump increases tariffs on Canada to 35%

Canadian Prime Minister Mark Carney has said he is “disappointed” by an increased tariff on some exports to the United States.

US President Donald Trump escalated a trade war by boosting the tariff rate from 25% to 35%, saying that Canada had “failed to cooperate” in curbing the flow of fentanyl and other drugs across the US border. The Canadian government says it is cracking down on drug gangs.

However most goods from Canada will dodge the import tax imposed by the US thanks to an existing trade treaty, the United States-Mexico-Canada Agreement (USMCA).

Trump also announced sweeping tariffs on dozens of countries, as he continued his drive to remake global trade.

Economists and financial analysts have warned that the new levies will raise prices for businesses and consumers in the US and weigh on the economy, predictions that the Trump administration has dismissed.

White House press secretary Karoline Leavitt told reporters on Thursday that Trump was “proving the so-called economic experts wrong at every turn”.

“What we are watching is President Trump rebuilding the greatest economy in the history of the world,” she said.

Mostcountries affected by the so-called “reciprocal” tariffs will have seven days before they kick in.

Goods that are loaded onto ships by 7 August and those that are already in transit will also not be affected by the rates if they reach the US before 5 October.

The US has however reached a deal with South Korea, imposing a lower 15% tariff on its imports in return for investment in the US and other concessions.

In a post on social media, Swiss President Karin Keller-Sutter said she had a last-minute phone call with Trump, which ended without an accord.

“The trade deficit remains a central concern of his,” she wrote. Switzerland ended up with a 39% tariff.