Ottawa, Canada - More than 85% of trade between the US and Canada remains tariff-free, Prime Minister Mark Carney said Tuesday, days after President Donald Trump hiked levies on some Canadian goods.

Carney has said he was disappointed by Trump's decision last week to raise tariffs on isolated Canadian imports from 25% to 35% – which took effect August 1.

But the Canadian leader stressed the importance of Trump's decision to preserve exemptions for all goods compliant with the US-Mexico-Canada (USMCA) agreement, which Trump signed – and praised – in his first term.

Speaking in the west coast province of British Columbia, Carney said Canada currently faces one of the lowest average US tariff rates of any country.

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"Over 85% of Canada-US trade continues to be tariff-free in both directions," he said.

Trump justified his latest Canada tariffs on grounds that the US northern neighbor had not done enough to limit the cross-border flow of fentanyl, a drug fueling a major US opioid crisis.

Carney noted that fentanyl entering the US from Canada was "a rounding error" compared to other sources.

According to US data, fentanyl seized at the northern border accounted for less than 0.1% of all seizures between 2022 and 2024.

Carney told reporters he had not spoken to Trump since last week's tariff announcement.

"We'll speak when it makes sense," he said, voicing hope negotiators could still move towards a comprehensive bilateral deal.