Canadian Prime Minister Mark Carney announced Friday he is ending retaliatory tariffs on U.S. goods, saying the move will match Washington’s exemptions for goods covered under the United States-Mexico-Canada trade agreement.
“Canada and the U.S. have now reestablished free trade for the vast majority of our goods,” Carney said during a press conference that revealed the tariffs will be lifted. “Canada currently has the best trade deal with the United States. And while it’s different from what we had before, it’s still better than that of any other country.
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The new terms ending retaliatory tariffs will take effect on Sept. 1, Carney said. Canada will retain tariffs on steel, aluminum, and autos.
The announcement, which signals a softening of relations between Canada and the U.S., comes after Carney held a “productive” phone call about trade and other issues with President Donald Trump on Thursday.
For months, the two countries have been engaged in trade disputes that sparked when Trump placed tariffs on Ottawa earlier this year as the White House engaged in an effort to make economic exchanges more “fair” to the U.S.
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While the USMCA has afforded Carney a level of protection from tariffs, Trump still revealed plans to impose a 35% tariff on all Canadian goods and a 50% levy on all Canadian steel and aluminum imports. Ottawa retaliated with a 25% counter-tariff worth over $20 billion on U.S. goods, including oranges, alcohol, clothing and shoes, motorcycles, and cosmetics.
Canada has made several concessions to the Trump administration in recent months as it works to build a new trade deal with the White House, such as pulling its digital services tax on the U.S. and announcing in July plans to delay additional retaliatory tariffs on Washington.