Canada will remove retaliatory tariffs on a wide range of U.S. goods that comply with the US-Mexico-Canada Agreement (USMCA), while maintaining levies on U.S. autos, steel, and aluminum. Prime Minister Mark Carney is expected to announce the policy shift Friday following a cabinet meeting.
- Canada’s move aligns its tariff policy more closely with U.S. measures, easing tensions with the Trump administration.
- 25% tariffs will remain on U.S. steel, aluminum, and automobiles.
- The shift comes ahead of the scheduled review of the USMCA trade deal.
- Canada’s earlier counter-tariffs included 25% duties on C$30B ($21.7B) worth of U.S. goods, such as orange juice, wine, clothing, and motorcycles.
- Carney’s approach marks a departure from former Prime Minister Justin Trudeau’s broader counter-tariff strategy.
- The change follows a phone call between Carney and President Trump, their first public discussion in weeks.
