Canada will remove retaliatory tariffs on US goods covered by the US-Mexico-Canada (USMCA) free trade agreement, effective 1 September, prime minister Mark Carney said today.
The move aligns Canada with the US' position made earlier this month that Canadian exports to the US will not be subject to International Emergency Economic Powers Act (IEEPA) tariffs imposed by President Donald Trump.
"We're matching what the United States has done, what the president has done," Carney said from Ottawa on Friday. "We have the best deal of any country with the United States, right now."
Canada's 25pc tariff on US steel, aluminum and automobiles will remain in place. The US still imposes a higher tariff, 50pc, on Canadian imports of steel and aluminum.
Canadian goods entering the US are subject to a 5.6pc tariff, on average, compared to almost 16pc worldwide, according to the Canadian government.
Carney, who spoke with Trump on 21 August, said the two agreed to intensify discussions relating to current trade challenges in strategic sectors. USMCA is set for a joint review in spring 2026, which will take anywhere between 6-18 months, according to Carney.
Trump welcomed Canada's decision to scrap the tariffs.
"He's removing his retaliatory tariffs, which I thought was nice, and we're going to have another call soon," Trump said on Friday. "We want to be very good to Canada."
Meanwhile, Carney plans to soon announce the first in a series of "nation-building projects" to boost development, tap into new markets and create deeper alliances with other foreign countries — moves spurred by Canada's historic strengths with the US becoming "vulnerabilities" under Trump.
