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Key Points

Canada has announced it will remove all retaliatory tariffs on US goods that comply with the Canada-US-Mexico Agreement by September 1. However, tariffs on key products like steel, aluminum, and automobiles will remain in place as trade discussions continue. Prime Minister Mark Carney emphasized that 85% of trade between the two nations is already tariff-free, calling it a significant advantage. The decision comes after recent US tariff increases and ongoing negotiations between the two countries.

Key Points: Canada Removes CUSMA Tariffs on US Goods by September 1

  • Canada retains tariffs on steel, aluminum, and autos despite broader removal
  • 85% of Canada-US trade remains tariff-free under current agreements
  • White House welcomes the move but calls it long overdue
  • Tariff decision follows US hike to 35% on some Canadian goods
2 min read

Canada to remove all retaliatory tariffs on CUSMA-compliant US goods by Sept 1

Canada will lift retaliatory tariffs on CUSMA-compliant US goods by Sept 1, though steel, aluminum, and auto tariffs remain amid ongoing trade tensions.

"As we work to address outstanding trade issues with the US, it is important we do everything we can to preserve this unique advantage for Canadian workers and their families - Mark Carney"

Ottawa, August 23

Prime Minister Mark Carney on Friday announced that Canada will remove all tariffs on US goods covered under the Canada-US-Mexico Agreement (CUSMA) by September 1, CBC News reported.

However, Canada will retain its tariffs on certain key products, including steel, aluminium, and autos, as the country navigates its trading relationship with the US.

Despite the ongoing trade tensions and US-imposed tariffs on various Canadian exports, such as steel, aluminium, autos, copper, lumber, and energy, Carney highlighted that a substantial portion of Canada-US trade remains tariff-free, as per CBC News.

He further noted that 85 per cent of trade between the two countries is not subject to tariffs, which he considers a better deal than other countries have.

"As we work to address outstanding trade issues with the US, it is important we do everything we can to preserve this unique advantage for Canadian workers and their families," Carney said.

A White House official said they welcome the move, calling it "long overdue."

The official added that they "look forward to continuing discussions with Canada on trade and national security concerns."

Carney had hinted earlier this month that he might consider dropping some counter-tariffs on US goods to ease the trade war's impact on Canadian industries.

According to CBC News, this development comes after US President Donald Trump signed an executive order on July 31, significantly increasing tariffs on certain Canadian goods to 35 per cent. The tariff hike was set to take effect immediately, at 12:01 am the following day.

Notably, Canada could have potentially avoided this escalation if a new trade deal had been reached with the US by the August 1 deadline, but it appears negotiations didn't yield the desired outcome.

The Trump administration said Canada's rate was being hiked in response to fentanyl trafficking and Canada's decision earlier this year to hit back with counter-tariffs.

The Canadian government has imposed retaliatory tariffs on US goods three times since the trade war began, including counter-tariffs on USD 60 billion worth of US consumer goods and additional tariffs on U.S. autos.

The 35 per cent tariff rate only applies to goods not covered by CUSMA.

- ANI

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Reader Comments

P
Priya S
Interesting how they're keeping tariffs on key products like steel and autos. Smart strategy to protect domestic industries while easing tensions. India should adopt similar selective approaches in trade negotiations.
M
Michael C
The White House calling it "long overdue" shows how tense things have been. Trade wars create uncertainty for businesses and jobs. Hope both countries find permanent solutions soon.
A
Ananya R
️ 85% trade being tariff-free is impressive! Shows how interconnected these economies are. Meanwhile, India needs to work on better trade agreements with major partners. Our exporters face too many barriers.
S
Siddharth J
The fentanyl trafficking reason seems like an excuse. Trade should be kept separate from other issues. This kind of mixing creates unnecessary complications in international relations.
N
Nisha Z
Canada is playing it smart - removing some tariffs while protecting key sectors. Hope this leads to better negotiations. Trade wars ultimately hurt consumers with higher prices. 🙏

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