U.S. President Donald Trump signed an executive order Thursday evening increasing tariffs on some Canadian goods, the White House said, after Ottawa and Washington failed to reach a trade agreement by the President’s Aug. 1 deadline.

The order, which goes into effect at midnight, will raise the so-called “fentanyl tariff” that Mr. Trump imposed on Canadian goods in March to 35 per cent from 25 per cent.

This tariff does not apply to exports that meet rules of origin outlined in the United States-Mexico-Canada free trade agreement, which has allowed most Canadian products to continue trading tariff free. The executive order signed on Thursday extended this crucial exemption.

Mr. Trump has justified these tariffs – which differ from the industry-specific tariffs on steel, aluminum and autos – by saying they’re needed to force Canada to do more to address fentanyl trafficking. The White House reiterated these arguments in the executive order Thursday.