Donald Trump news: Canada drops many of its retaliatory tariffs on the US
Canada has removed many of its retaliatory tariffs on the US, marking a significant step forward in the two countries’ relationship.
Canada in March imposed counter-tariffs of 25 per cent on a long list of US products that fall in line with the North American trade deal after the US had announced 25 per cent duties on steel and aluminium.
Notably, Canada’s 25 per cent tariffs on US autos, steel and aluminium will remain in place for now, Canadian Prime Minister Mark Carney said in a press conference on Friday.
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By continuing you agree to our Terms and Privacy Policy.The change will go into effect on Sept. 1, Carney added, saying he believes Canada has the best trade deal out of all of the countries working with the U.S.
“As we work intensively with the United States, our focus is squarely on the strategic sectors,” Carney said.
A White House official told NBC News that Canada’s move was “long overdue.”
“We look forward to continuing our discussions with Canada on the Administration’s trade and national security concerns,” the official said.
The announcement follows a phone call between Carney and President Donald Trump, the first known call between the two since failed talks before the August 1 tariff deadline.
A readout of the Thursday call from Carney’s office called the conversation “productive and wide-ranging,” with both leaders agreeing to reconvene soon.
Carney said Friday that Trump assured him that dropping retaliatory tariffs will kick-start negotiations between the two countries.
The move comes as the US-Mexico-Canada Agreement, which Trump negotiated during his first term, is scheduled to undergo a review later this year.
Canada was swift to impose its counter-tariffs on the US on CA$30 billion, or US$21.7 billion, worth of US goods under then-Prime Minister Justin Trudeau. In July, Trump announced he would raise tariffs on Canada to 35 per cent and said the rise of fentanyl and Canada’s unwillingness to work with the U.S. affected his decision.
A total of 43 pounds of the drug was seized at the northern border during 2024 with an additional 58 pounds having been confiscated there so far this year, according to U.S. Customs and Border Protection.
At the time, Carney said in a post on social media site X that the country was committed to working alongside the U.S. to come to a deal.
