The announcement from the White House late Thursday said Canada had failed to “do more to arrest, seize, detain or otherwise intercept ... 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.
Earlier Thursday, the president said Canada's announcement it will recognize a Palestinian state would "make it very hard” for the United States to reach a trade agreement with its northern neighbor. Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America.
Prime Minister Mark Carney had tempered expectations over tariffs, saying Ottawa would only agree to a deal “if there’s one on the table that is in the best interests of Canadians.”
In a statement released early Friday, he said he was disappointed by Trump's actions and vowed to diversify Canada's exports.
Trump sent a letter to Canada a few weeks ago warning he planned to raise duties on many goods imported from Canada to 35%.
Some imports from Canada are still protected by the 2020 United States-Mexico-Canada Agreement, or USMCA, which is up for renegotiation next year.
