Summary
Canada has removed some retaliatory tariffs on U.S. goods to align with exemptions under the U.S.-Mexico-Canada Agreement (USMCA). The decision aims to improve trade relations with the U.S. while maintaining tariffs on specific items like steel and aluminum. The move comes ahead of a review of the USMCA, scheduled for 2026.
Key Facts
- Canada announced dropping some retaliatory tariffs against the U.S. to mirror tariff exemptions in the USMCA.
- Prime Minister Mark Carney emphasized that a significant portion of Canada-U.S. trade remains tariff-free.
- The decision aims to enhance trade discussions ahead of the USMCA review in 2026.
- Carney discussed the tariff changes with U.S. President Donald Trump before making the announcement.
- Canada will keep tariffs on specific goods like steel, aluminum, and autos while working on resolving related trade issues.
- Canada had previously planned a digital tax, but dropped it after discussions with Trump.
- Over 75% of Canadian exports go to the U.S., highlighting the importance of smooth trade relations for Canada.
