Canadian Prime Minister Mark Carney said Friday he's "disappointed" with President Donald Trump's decision to slap 35% tariffs on Canadian goods not covered under what the Canadians call the Canada-United States-Mexico Agreement.

The White House reportedly said late Thursday the tariffs were raised because Canada failed to "do more to arrest, seize traffickers, criminals at large, and illicit drugs." Trump had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries.

"While the Canadian government is disappointed by this action, we remain committed to CUSMA, which is the world's second-largest free trade agreement by trading volume," Carney said in a statement. "The U.S. application of CUSMA means that the U.S. average tariff rate on Canadian goods remains one of its lowest for all of its trading partners.

"Other sectors of our economy — including lumber, steel, aluminum, and automobiles — are, however, heavily impacted by U.S. duties and tariffs. For such sectors, the Canadian government will act to protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversify our export markets."

Carney shot back at the Trump administration's reasoning for the higher tariffs, saying, "Canada accounts for only 1% of U.S. fentanyl imports and has been working intensively to further reduce these volumes.

"Canada's government is making historic investments in border security to arrest drug traffickers, take down transnational gangs, and end migrant smuggling," Carney said.

"These include thousands of new law enforcement and border security officers, aerial surveillance, intelligence and security operations, and the strongest border legislation in our history. We will continue working with the United States to stop the scourge of fentanyl and save lives in both our countries."

Dominic LeBlanc, Canada's trade minister to the U.S., left Washington, D.C., on Friday after a deal couldn't be reached, but expressed confidence that Canada's trade pact with the U.S. and Mexico would blunt the impact of the escalating tariffs, Politico reported.

The Bank of Canada forecast this week that up to 95% of Canadian exports could qualify for exemptions under what the Americans call the U.S.-Mexico-Canada, or USMCA, pact as the share of Canadian companies claiming tariff exemptions has escalated, according to Politico.

Before boarding a flight back to his New Brunswick home, LeBlanc said that leaves Canada "in a favorable position with respect to the overall tariff rate on our economy as compared to other trading partners."

"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," Carney said. "We can give ourselves more than any foreign government can ever take away by building with Canadian workers and by using Canadian resources to benefit all Canadians."

• Trump Imposes New Tariffs on Multiple Countries, Markets Slide
• Trading Partners Scramble for Deals Ahead of Tariff Deadline