Canada’s Prime Minister Mark Carney has announced that the country will lift a portion of its multi-billion-dollar retaliatory tariffs on United States goods, while maintaining levies on autos, steel, and aluminum.
The announcement follows a phone call between him and President Donald Trump, their first since both nations missed a self-imposed deadline to finalize a trade agreement.
Carney emphasized that tariffs on key sectors like steel, aluminum, and automotive products will remain in place as the Liberal government continues negotiations with the U.S. to establish a renewed trade framework.
He added that despite the ongoing trade tensions and U.S. tariffs on various Canadian exports, including steel, aluminum, and energy—85 percent of trade between the two countries remains tariff-free, a figure that compares favorably to other global trading relationships.
“As we work to address outstanding trade issues with the U.S., it is important we do everything we can to preserve this unique advantage for Canadian workers and their families,” Carney said.
Canada had placed a 25% levy on about C$30bn (£16bn; $21.7bn) worth of US goods on an array of products, including orange juice and washing machines.
The tax hike was in retaliation to the US tariffs on Canada, which as of August are valued at 35% on all goods not compliant with the countries’ existing free trade deal.
Carney said Canada will now “match the US” by dropping its tariffs on goods compliant with the US-Mexico-Canada free trade agreement (USMCA). He said that would “re-establish free trade for the vast majority” of goods that move between the two countries. The decision will go into effect on 1 September, Carney said.
In a statement to the newsmen, the White House said it welcomes Canada’s move, adding that it is “long overdue.”
“We look forward to continuing our discussions with Canada on the Administration’s trade and national security concerns,” the White House added.
Polling shows the majority of Canadians support retaliatory tariffs on the US.
Carney, who was elected in an April general election, campaigned on an aggressive “elbows up” approach to negotiating with Trump, referencing a popular ice hockey term.
Since returning to the White House in January, Trump has launched a global trade war, imposing tariffs or raising them on goods from around the world, and threatening to go higher as he works to negotiate trade deals he sees as favorable to the US.
