Canada to Lift Some Retaliatory Tariffs on US

Canada and China have imposed retaliatory tariffs on the US.

On Friday, Canadian Prime Minister Mark Carney announced that Canada will remove some of its retaliatory tariffs on US goods, while keeping levies on automobiles, steel, and aluminum.

This decision followed a phone call between Carney and President Donald Trump, the first since missing a deadline to reach a trade agreement.

Canada had imposed a 25% levy on around C$30 billion (£16 billion; $21.7 billion) worth of US goods, including items like orange juice and washing machines, in response to US tariffs.

Carney stated that Canada will lift tariffs on goods compliant with the US-Mexico-Canada free trade agreement (USMCA) to re-establish free trade for most goods between the two countries, effective from 1 September.

The White House welcomed Canada's move, calling it "long overdue," and expressed readiness to continue discussions on trade and national security with Canada.

Canada and China are the only two countries to have imposed retaliatory tariffs on American goods in response to US tariffs.

Carney, who campaigned on a tough negotiating stance with Trump, faced criticism from Conservative leader Pierre Poilievre for dropping the counter-tariffs.

Despite the tariff adjustments, Canada still maintains a more favorable tariff deal with the US compared to many other countries due to the free trade carve-out.

Trump's administration has implemented tariffs on various countries as part of its trade strategy, with ongoing negotiations to secure trade deals advantageous to the US.

The focus will now shift to accelerating negotiations on key sectors like autos, steel, aluminum, and lumber ahead of the scheduled review of the USMCA free trade agreement next year.