U.S. President Donald Trump signed an executive order on Thursday increasing tariffs on Canadian goods to 35% from 25%, the White House said.

Canada, one of the U.S.’s largest trading partners, was not able to reach a deal with the White House, who instead raised tariffs on some Canadian goods. “Relationships matter,” says Former U.S. Ambassador to Canada David Cohen,

President Trump announced Thursday that the U.S. would raise tariffs on certain Canadian goods from 25 percent to 35 percent beginning Friday. Goods that are covered under the 2020 United States-Mexico-Canada Agreement will be exempt from the tariff rate,