Summary
Canada has decided to remove some of its tariffs on U.S. goods in response to the United States removing some of its own tariffs, as both countries work to lessen a trade conflict. Tariffs will remain on certain products like steel and cars, but most goods will now move freely between the two countries under the US-Mexico-Canada Agreement. The move reflects efforts to find the best trade arrangement possible given the current economic environment.
Key Facts
- Canada is lifting tariffs on U.S. goods that fall under the US-Mexico-Canada Agreement (USMCA).
- The United States clarified it will not impose tariffs on Canadian goods complying with USMCA.
- Some tariffs, specifically on products like steel, aluminum, and cars, will still exist.
- Changes in tariffs between the two countries will take effect on September 1.
- Trade integration between the U.S. and Canada is not expected to return to levels seen before the trade conflict.
- Mark Carney, Canadian Prime Minister, led this decision, which comes amid shifts in global trade policies led by the U.S.
- The U.S. government has welcomed Canada's decision to ease tariffs.
