Online Desk : Prime Minister Mark Carney said Friday his government is “disappointed” by President Donald Trump’s decision to increase US tariffs on Canadian goods to 35 percent, reports AFP.

The US leader had warned of trade consequences for Ottawa after Carney announced plans to recognize a Palestinian state at the UN General Assembly in September.

In an executive order, Trump raised the levy from 25 percent to 35 percent.

A wide swath of products covered by a 2020 United States-Mexico-Canada Agreement remain exempt from the tariff rate, however.

“The Canadian government is disappointed by this action,” Carney said in a statement.

Trump’s order cited Canada’s failure to “cooperate in curbing the ongoing flood of fentanyl and other illicit drugs” as well as its “retaliation” against his measures.

Carney outlined Ottawa’s efforts to crack down on fentanyl and to increase border security.

“Canada accounts for only one percent of US fentanyl imports and has been working intensively to further reduce these volumes,” he said.

Ottawa remained committed to the Canada-US-Mexico Agreement (CUSMA), the prime minister said.

“The US application of CUSMA means that the US average tariff rate on Canadian goods remains one of its lowest for all of its trading partners,” he said.

“Other sectors of our economy – including lumber, steel, aluminum and automobiles – are, however, heavily impacted by US duties and tariffs.”