Canada will roll back some of its retaliatory tariffs on U.S. imports starting Sept. 1, Prime Minister Mark Carney announced in a press briefing Friday.
In step with its southern neighbor, Canada will no longer charge tariffs for U.S. imports compliant with the United States-Mexico-Canada Agreement. The country will match U.S.’ levies on products that do not adhere to the pact. Per Carney, under these measures, 85% of trade between Canada and the U.S. will be tariff free.
However, Canada will maintain its retaliatory measures to U.S. sectoral duties on steel, aluminum and automobiles, Carney said. He added that these sector-specific levies would be the focal point of ongoing trade negotiations with the U.S.
Carney’s announcement came a day after the prime minister spoke by phone with U.S. President Donald Trump about the two countries’ economic and security relationship.
“The president and I had a long conversation yesterday, and we see the opportunity to build on where our relationship already is,” Carney said during Friday’s briefing, noting that the two leaders plan to advance trade discussions “as rapidly as possible.”
In March, Canada installed 25% tariffs on nearly $60 billion worth of U.S. goods in response to levies by the Trump administration. Carney said he is lifting some of those duties to create a “good foundation” for future trade discussions, including the review of the USMCA next year.
“You drop the gloves in the first period,” Carney said. “You know, when you're late in the game, dropping the gloves and taking the extra penalty might not be the best thing to do.”
Per the prime minister, Canada exports currently face an average tariff of 5.6% from the U.S., a number lower than those faced by imports from many other trading partners as part of the Trump administration’s country-specific tariff regime.
“Canada currently has the best trade deal with the United States, and while it's different from what we had before, it is still better than that of any other country,” Carney said during the briefing, adding later, “Nobody has a deal with the United States that they used to have. Nobody does.”
