Canadian Prime Minister Mark Carney said he was disappointed after US President Donald Trump signed an executive order to raise tariffs on Canadian goods to 35% from 25% on products outside the scope of the U.S.-Mexico-Canada trade agreement.

The move, which Washington linked in part to what it said was Canada’s failure to stop fentanyl smuggling, is the latest salvo in Trump’s months-long tariff war initiated soon after taking power.

U.S. duties and tariffs will heavily affect lumber, steel, aluminum, and automobiles, Carney said in a post on X, vowing action to protect Canadian jobs, buy its goods, invest in industrial competitiveness and diversify export markets.

To justify its step, the U.S. has cited the cross-border flow of fentanyl, even though Canada accounts for just 1% of U.S. fentanyl imports and has been working intensively to further reduce the volumes, Carney added.

Reuters

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Canada’s Prime Minister Mark Carney arrives at a press conference to make an announcement on recognizing Palestinian statehood, in Ottawa, Ontario, Canada, July 30, 2025. REUTERS/Patrick Doyle

Canadian Prime Minister Mark Carney said he was disappointed after US President Donald Trump signed an executive order to raise tariffs on Canadian goods to 35% from 25% on products outside the scope of the U.S.-Mexico-Canada trade agreement.

The move, which Washington linked in part to what it said was Canada’s failure to stop fentanyl smuggling, is the latest salvo in Trump’s months-long tariff war initiated soon after taking power.

US duties and tariffs will heavily affect lumber, steel, aluminum, and automobiles, Carney said in a post on X, vowing action to protect Canadian jobs, buy its goods, invest in industrial competitiveness and diversify export markets.

To justify its step, the U.S. has cited the cross-border flow of fentanyl, even though Canada accounts for just 1% of U.S. fentanyl imports and has been working intensively to further reduce the volumes, Carney added. REUTERS

From 40m ago 05.59 BST Mark Carney ‘disappointed’ at 35% Trump tariffs on Canada Canadian prime minister Mark Carney has said he is disappointed at Donald Trump raising tariffs from 25% to 35% on Canadian goods outside of the US-Mexico-Canada trade agreement. More on Carney’s statement in a moment. Share Updated at 06.11 BST

6m ago 06.32 BST Further to Mark Carney expressing disappointment at Trump’s 35% tariffs on Canada, the prime minister said the Canadian government “will act to project Canadian jobs, invest in our industrial competitiveness, buy Canadian and diversity our export markets”. He said parts of Canada’s economy including lumber, steel, aluminium and automobiles were heavily impacted by US tariffs but despite the US move, Canada remained committed to the US-Mexico-Canada trade agreement (Cusma). Carney said in his statement that the US had justified it 35% tariffs on the basis of the cross-border flow of fentanyl, “despite the fact that Canada accounts for only 1% of US fentanyl imports and has been working intensively to further reduce these volumes”. We will continue working with the United States to stop the scourge of fentanyl and save lives in both our countries. Carney said Canada was also working internally to “cut down trade barriers to build one Canadian economy”. Canadians will be our own best customer, creating more well-paying careers at home, as we strengthen and diversify our trading partnerships throughout the world. We can give ourselves more than any foreign government can ever take away by building with Canadians workers and by using Canadian resources to benefit all Canadians. Share Updated at 06.38 BST

40m ago 05.59 BST Mark Carney ‘disappointed’ at 35% Trump tariffs on Canada Canadian prime minister Mark Carney has said he is disappointed at Donald Trump raising tariffs from 25% to 35% on Canadian goods outside of the US-Mexico-Canada trade agreement. More on Carney’s statement in a moment. Share Updated at 06.11 BST

51m ago 05.48 BST Just to recap, Donald Trump signed an executive order on Thursday that would have new tariffs on a large array of US trading partners go into effect in seven days – the next step in his trade agenda that will test the global economy and alliances. The order was issued shortly after 7pm, the Associated Press reports, and came after a flurry of tariff-related activity in recent days, as the White House announced agreements with various nations and blocs ahead of Trump’s self-imposed deadline of 1 August. Also on Thursday, Trump announced that he would extend trade negotiations with Mexico for 90 days. But the vast majority of nations are continuing to face uncertainty ahead of the coming deadline. And while a handful of trade deals have also trickled in, many details remain hazy – with businesses and manufacturers around the world bracing for heightened operating costs and potential price hikes regardless. Share

1h ago 05.31 BST In Canada, the mayor of an Ontario city has expressed defiance over the 35% tariffs Donald Trump has imposed on the country and called for people to “buy nothing” from the US. Carolyn Parrish, mayor of the city of Mississauga, near Toronto, posted on X: Canada comes of age! 35% tariffs imposed by Trump as of midnight tonight. Time to grow up! Batten down the hatches and expand to new markets. Trade east west. Remove restrictions in our own country. Refine our own oil! Buy nothing from USA. Thank you Trump for a new tomorrow! Trump on Thursday increased tariffs from 25% to 35% on all products not covered by the US-Mexico-Canada trade agreement. As reported earlier, the president told NBC News on Thursday he was open to further discussions with Canada, adding that he may even speak with Canadian PM Mark Carney later in the night. Share Updated at 05.39 BST

1h ago 05.12 BST Most Asian currencies slipped to multi-month lows on Friday, with South Korea’s won and Malaysia’s ringgit leading declines, as investors fled riskier regional assets after the US’s sweeping new tariffs. The won bore the brunt of the selloff, tumbling 0.62% to a two-month low of 1,400.6 against the US dollar, while the ringgit shed 0.5% to hit its weakest level since 23 June 23, Reuters reports. The broad-based retreat extended across the region, with the Philippine peso, Taiwan dollar and Thai baht all declining more than 0.3% as the tariff fallout rippled through Asian markets. The MSCI emerging market currency gauge has already fallen well over 1% so far this week, snapping in July from a six-month rally. It fell over 0.3% on Friday. Share

2h ago 04.59 BST Malaysia says its revised US tariff rate has been achieved without compromising the nation’s sovereign rights after it stood firm on various “red line” issues. Malaysia’s trade ministry said on Friday that the positive outcome of the US tariff talks followed sustained engagement between both governments and was a significant achievement of Malaysia’s thorough and methodical negotiating process, Reuters reports. The US imposed a 19% tariff rate on Malaysia. The ministry said: We will continue to work closely with relevant ministries, agencies to find ways to mitigate the impact of tariffs on Malaysia’s exports. Share Updated at 05.01 BST

2h ago 04.45 BST Across the Tasman Sea, New Zealand was hit with 15% tariffs. The country’s trade minister Todd McClay said he was hoping to have talks with his US counterparts. “The first step will be to talk to them directly. And we’ve engaged in a lot. In fact, it’s been very good engagement,” he told Radio New Zealand. We will be making the case about why this shouldn’t have happened, and engaging very, very quickly again with US officials to clarify this and to seek changes around the new tariffs put on New Zealand exporters. Local news outlet Stuff.com reported that the opposition Labour party’s trade spokesperson, Damien O’Connor, said the new tariff rate was a “slap in the face” for exporters and could lead to higher costs at home. View image in fullscreen The city skyline of Auckland, New Zealand. Photograph: Fiona Goodall/The Guardian Share Updated at 04.53 BST

2h ago 04.31 BST There was good news for Australia in the announcements from Trump – in that it was not mentioned at all. Guardian Australia understands the US government confirmed to the Australian embassy in Washington DC that the baseline 10% tariff rate would remain in place. “The White House has confirmed that no country has reciprocal tariffs lower than Australia,” a spokesperson for Australia’s minister for trade, Don Farrell, said on Friday morning. Get the view from Australia here: Australia dodges latest Trump tariff hikes as trade minister heralds ‘vindication’ for Albanese’s approach Read more Share Updated at 04.53 BST

2h ago 04.25 BST Amy Hawkins, our senior China correspondent, has been reporting on the impact of Trump’s trade war on China’s fast-fashion capital Guangzhou. There, she found millions of workers toiling day and night in informal workshops to produce cheap garments for export. Business was slow, she reports: In Panyu, Yang Ruiping has run his small clothes factory, which specialises in tops and employs about 20 people, for two decades. About 30% of his orders are exported, mostly to Shein and Amazon, down from more than 50% before the pandemic. Although the pause in the trade war has eased the pressure on his business slightly, he still has “little confidence in the US”. “In the recent US-China trade war, if the tariffs go up, we need to lower the production costs to combat it,” he says. “It leaves little room for profit”. With no room to cut wages any lower, Yang says he is already losing money on every top he sells. He keeps accepting the orders in order to keep the factory open, but with the domestic market becoming increasingly competitive, he is aware he might not be able to operate much longer. Read the full story here: China’s fast-fashion capital slows down under Trump’s trade war Read more View image in fullscreen Workers producing garments at a textile factory that supplies clothes to fast fashion e-commerce company Shein in Guangzhou. Photograph: Jade Gao/AFP/Getty Images Share Updated at 04.42 BST

2h ago 04.14 BST More on Cambodia now – deputy prime minister Sun Chanthol has thanked Donald Trump for his understanding in Cambodia’s negotiations to reduce a tariff rate to 19% after initially being set at 49% then later 36% – among the world’s highest levies, Reuters reporting. The news agency quoted Chanthol – Cambodia’s top trade negotiator – as saying in an interview: “If the US maintained 49% or 36%, that industry would collapse in my opinion,” referring to the garment and footwear manufacturing sector, the biggest economic driver in the country of 17.6 million people. People would go to Indonesia, Vietnam … a 16% difference would have been huge. We can live with 5%, anything around that. We are very grateful, for protecting our industry and its employees. We have close to 1 million workers, mainly women, each one of those workers supporting four-five members of their family. It would have been a huge impact if this would have been bad. Cambodia has a big trade surplus with the US, with its exports to the American market accounting for 37.9% of its total shipments in 2024, valued at close to $10bn, according to official data. View image in fullscreen ‘It would have been a huge impact’: Cambodian deputy PM Sun Chanthol. Photograph: Chan Tha Lach/Reuters Share Updated at 04.15 BST

3h ago 03.59 BST The Indian rupee was expected to open slightly weaker on Friday amid worries over the impact of the steep US tariffs on Indian exports and persistent portfolio outflows. Reuters reports the one-month non-deliverable forward indicated the rupee would open in the 87.65-87.70 range versus the US dollar, compared with 87.5950 in the previous session. The rupee declined about 2% in July, with Donald Trump’s threat of a 25% levy on Indian goods – alongside an unspecified penalty – pushing it closer to its all-time low of 87.95. Economists estimate the 25% tariff announced could shave off India’s 2025-26 growth by up to 40 basis points, but analysts and investors also believe India may be able to achieve a lower rate via negotiations. Share

3h ago 03.50 BST Cambodia’s deputy prime minster has said the new 19% tariff rate protects its garment manufacturing industry with its 1 million workers and allows the country to be competitive with its peers. Reuters quotes Sun Chanthol as saying the US’s previous tariff rate – set up to 49% – would have caused the industry to collapse. Share Updated at 03.54 BST

3h ago 03.38 BST Asian stocks tumble amid new Trump tariffs Shares in Asia fell on Friday after the US hit dozens of trading partners with high tariffs. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%, bringing the total loss this week to 1.8%. South Korea’s KOSPI plunged 3% while Taiwanese shares fell 0.9%, Reuters reports. Japan’s Nikkei dropped 0.4%. Chinese blue chips were flat and Hong Kong’s Hang Seng index eked out a small gain of 0.2%. “At this point, the reaction in markets has been modest, and I think part of the reason for that is the recent trade deals with the EU, Japan, and South Korea have certainly helped to cushion the impact,” said Tony Sycamore, an analyst at IG. The market now, I think, has probably taken the view that these trade tariff levels can be renegotiated, can be walked lower over the course of time. View image in fullscreen South Korean dealers work in front of monitors at Hana Bank in Seoul, South Korea. Photograph: Jeon Heon-Kyun/EPA Share Updated at 04.44 BST

3h ago 03.29 BST The tariff list – in full Here is a searchable list of the latest reciprocal tariffs announced by the White House: list of tariffs Share

3h ago 03.25 BST Donald Trump has said his new steep tariffs are going “very well, very smooth” – but that he’s open to more deals. The US president also told NBC News he was open to further discussions with Canada, adding that he may even speak with Canadian prime minister Mark Carney later in the night, Reuters reports. Trump signed an executive on Thursday order raising tariffs on Canadian goods to 35% from 25% on all products not covered by the US-Mexico-Canada trade agreement. View image in fullscreen Donald Trump speaks during an executive order signing ceremony in the Roosevelt Room of the White House in Washington. Photograph: Eric Lee/EPA Share Updated at 04.44 BST