Canadian Prime Minister Mark Carney said Ottawa was disappointed over U.S. President Donald Trump’s latest move to raise tariffs on Canadian goods to 35% from 25%, but would carry on trade negotiations with its southern neighbor.

U.S. President Donald Trump said on Wednesday that Canadian Prime Minister Mark Carney reached out ahead of an August 1 tariff deadline, but no conversations between the two took place. Trump has warned that any country that does not strike a deal with the U.

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