Canada’s Prime Minister, Mark Carney, revealed on Friday that all tariffs on U.S. goods covered by the Canada-U.S.-Mexico Agreement (CUSMA) will be eliminated by September 1. Despite Canada maintaining tariffs on steel, aluminum, and autos, Carney highlighted that 85% of trade with the U.S. remains tariff-free, surpassing deals other countries have. Carney emphasized the importance of preserving this advantage for Canadian workers and families amid ongoing trade tensions.
U.S. President Donald Trump expressed support for Canada, commending Carney and their recent discussions in the Oval Office. Carney had previously suggested the possibility of removing some counter-tariffs to support Canadian industries affected by the trade dispute with the U.S.
Following Trump’s executive order raising tariffs on select Canadian goods, Carney’s decision to lift retaliatory tariffs aims to pave the way for intensified trade discussions and strategic sector resolutions between the two nations. This move aligns with efforts to enhance the Canadian economy by fostering trade diversification, accelerating infrastructure projects, and bolstering national defense investments.
While Carney’s decision received praise from some sectors, there were criticisms from Conservative Leader Pierre Poilievre, who accused the Prime Minister of making concessions without reciprocal benefits. Poilievre advocated for the complete removal of tariffs between Canada and the U.S., emphasizing the need for a restored free-trading relationship.
Ontario Premier Doug Ford stressed the importance of securing agreements that support key industries like steel, auto, forestry, and copper. The Canadian Federation of Independent Business (CFIB) welcomed the tariff removal as a positive step to alleviate pressures on small businesses impacted by the trade dispute.
Unifor, Canada’s largest private sector union, criticized the decision to retract counter-tariffs, asserting that it could embolden further U.S. aggression. The union called for leveraging tariffs to protect Canadian workers and urged against unilateral concessions without reciprocal tariff eliminations by the U.S.
