Canada Lifts Retaliatory Tariffs, Strengthens Trade with US
Canada is aligning its tariff exemptions with those of the US under the USMCA, Prime Minister Mark Carney announced. This move aims to reset trade talks and solidify relations, with over 85% of Canada-US trade remaining tariff-free. The USMCA review is set for 2026.
- Country:
- Canada
In a strategic move to bolster trade relations, Canada has decided to drop retaliatory tariffs on goods covered under the US-Mexico-Canada trade agreement. Announced by Prime Minister Mark Carney on Friday, this step aligns Canada with US tariff exemptions and paves the way for future trade discussions.
Prime Minister Carney, following discussions with US President Donald Trump and subsequent meetings with his Cabinet, emphasized the importance of the 2020 free trade deal, which keeps the majority of goods tariff-free. Markedly, the USMCA will undergo a review in 2026, highlighting the ongoing importance of this trade agreement.
Canada's decision comes amidst concerns over US sector-specific tariffs that impact Canada's economy, such as those on steel and aluminum imports. Despite these challenges, Carney remains firm that Canada is not yielding but matching US actions to maintain a favourable trade position.
(With inputs from agencies.)
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