Article
Canada Eases Tariffs on U.S. Goods as Trade Tensions Cool Ahead of USMCA Review
Summary
Canada will lift most tariffs on U.S. goods starting Sept. 1, preserving duties on autos and metals, as both nations prepare for a USMCA review and seek to ease trade tensions
Canada has announced a major lifting of its retaliatory tariffs on US goods, a thawing in trade relations that have been frozen between the two countries for years. Prime Minister Mark Carney confirmed that the majority of the 25% counter-tariffs imposed on a wide range of American goods in March will be dropped effective September 1. Tariffs on key industries such as autos, steel, and aluminum will remain in place, however.
The move follows a positive call from Carney to President Donald Trump, their first direct communication after unsuccessful discussions earlier in August. The move precedes the imminent review of the U.S.-Mexico-Canada Agreement (USMCA), which has been at the center of North American trade policy since its renegotiation during Trump's first term.
Carney emphasized that Canada is "matching" U.S. tariff exemptions under USMCA and recommitted to restoring trade stability. While he acknowledged that full economic integration might not be returning, he stated that Canada now has the most preferential trade arrangement with the U.S. among other nations.
The retreat is cast as a strategic retooling, rather than a surrender, with Carney denying the prime minister was guilty of "elbows up" campaign rhetoric. The tariffs that are being maintained are a testament to Canada's resolve to protect cornerstone industries while returning to broader free trade.