Canada has announced plans to remove a significant portion of its retaliatory tariffs on goods imported from the United States, while simultaneously intensifying talks with Washington to reach a new trade agreement, Canadian Prime Minister Mark Carney said Friday.
However, tariffs on American automobiles, steel, and aluminum will remain in effect for the time being, Carney stated during a press conference in Ottawa.
He emphasized that the United States had recently clarified it would not impose tariffs on Canadian goods that comply with the U.S.-Mexico-Canada Agreement (USMCA).
“In this context, and in accordance with Canada’s commitment to the USMCA, I am announcing today that the Government of Canada will now align with the United States by removing all Canadian tariffs on U.S. goods specifically covered under the USMCA,” Carney said.
This announcement comes a day after he and President Donald Trump spoke by phone for the first time since both countries missed a self-imposed deadline to finalize a trade agreement.
Previously, Canada had imposed a 25% tax on approximately CAD 30 billion ($21.7 billion USD) worth of U.S. goods, including orange juice and washing machines. This increase was retaliatory, responding to U.S. tariffs on Canadian products, which since August had reached 35% on all goods not covered under the existing free trade agreement.
Carney stated that Canada will now “move closer to the U.S.” by removing tariffs on goods compliant with the USMCA, effectively restoring free trade for the vast majority of goods moving between the two countries.
The decision is set to take effect on September 1.
