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Key Points

Canada's Prime Minister Mark Carney announced the country will drop counter-tariffs on certain US goods starting September 1st. The decision comes after a phone conversation with US President Donald Trump about ongoing trade challenges. Canada will continue to maintain tariffs on steel, aluminum, and automotive products as negotiations continue. This move represents a strategic step in managing the complex trade relationship between the two countries.

Key Points: Carney Drops US Trade Tariffs Under CUSMA Deal

  • Canada strategically removes counter-tariffs on specific US goods
  • Maintains trade restrictions on steel and aluminum sectors
  • Follows phone discussion between Carney and Trump
  • Aims to resolve ongoing trade challenges between countries
2 min read

Canada to drop counter-tariffs on US goods covered by free trade agreement

Canada lifts counter-tariffs on select US goods while maintaining restrictions on steel, aluminum, and automotive sectors

"Canada will retain our tariffs on steel, aluminum and autos - Mark Carney, Canadian Prime Minister"

Ottawa, Aug 23

Canadian Prime Minister Mark Carney said that the country will lift its counter-tariffs on US goods specifically covered under the Canada-US-Mexico Agreement (CUSMA) starting September 1.

Carney made the announcement on the prime minister's website, one day after he spoke by phone with US President Donald Trump on Thursday.

"Canada will retain our tariffs on steel, aluminum and autos as we work intensively with the US to resolve the issues there," according to the statement.

Canada and the United States have been in a trade war since the United States announced sweeping tariffs on Canadian goods in February, Xinhua news agency reported.

Carney said the move to drop some counter-tariffs is meant to match US levies by implementing a carve-out for goods covered by CUSMA.

The two leaders discussed on Thursday current trade challenges and opportunities, sharing priorities in a new economic and security relationship between the two countries.

Canada had placed a 25 per cent levy on about C$30billion (£16bn; $21.7bn) worth of US goods on an array of products, including orange juice and washing machines.

The tax hike was in retaliation to US tariffs on Canada, which as of August are valued at 35 per cent on all goods not compliant with the countries' existing free trade deal.

- IANS

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Reader Comments

P
Priya S
Interesting how they're keeping tariffs on steel and aluminum. Smart strategy - protect key industries while showing willingness to negotiate. India could learn from this balanced approach.
M
Michael C
As someone in export business, I appreciate when countries follow trade agreements properly. These tariff wars create so much uncertainty for businesses.
A
Ananya R
$30 billion worth of goods affected! That's huge. Shows how interconnected economies are today. Hope they resolve the remaining issues soon. 🤝
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Suresh O
While this is positive, I think Canada should have held stronger. The US started this trade war, and backing down too quickly might not send the right message.
N
Nisha Z
Orange juice and washing machines? 😂 Interesting choices for tariffs. But seriously, glad to see diplomacy working. Trade should bring countries together, not divide them.

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