Canada will soon remove most of the retaliatory tariffs it imposed on American imports in response to President Donald Trump’s trade measures, according to CBC News.
Prime Minister Mark Carney made the announcement on Friday. The decision will go into effect on 1 September, Carney said.
The rollback is aimed at easing tensions with Washington and resetting the tone of trade relations under the U.S.-Mexico-Canada Agreement (USMCA).
Tariffs Dropped on Wide Range of U.S. Products
Under the new policy, a broad list of American goods — previously taxed at 25% when exported to Canada — will now be exempt, provided they comply with USMCA provisions. Products such as orange juice, wine, clothing, and motorcycles were hit in the first Canadian counter-tariff round earlier this year and are now expected to see relief.
However, tariffs will remain in place on steel, aluminum, cars, and other vehicles, since Trump has kept high levies on those categories.
Olive Branch to Washington
The decision marks a significant shift from Canada, which was among the most aggressive nations in retaliating against Trump’s trade actions. Sources told Bloomberg that the move is designed to “lay the groundwork” for an upcoming USMCA review.
The announcement follows a phone call between Carney and Trump this week — their first conversation in weeks.
Background: Canada’s Retaliatory Measures
Canada’s first wave of counter-tariffs came in March, imposing 25% duties on about $21.7 billion in U.S. goods. The second round targeted steel and aluminum after Trump raised U.S. tariffs on those metals.
While Carney threatened to escalate further when Trump doubled steel and aluminum tariffs to 50%, he ultimately held back.
Friday’s rollback signals an attempt to de-escalate tensions before a broader review of North American trade rules begins.
