Poli Alert Politics & Civics
Related Articles
Canada announced Friday it will lift many of the retaliatory tariffs it imposed on the United States earlier this year, marking a significant thaw in relations between the two countries.
Prime Minister Mark Carney said the move will take effect Sept. 1, though tariffs on steel, aluminum and automobiles — Canada’s most strategic sectors — will remain in place.
“As we work intensively with the United States, our focus is squarely on the strategic sectors,” Carney said at a press conference. “Canada continues to believe we have the best trade deal among U.S. partners.”
The announcement followed Carney’s first phone call with President Donald Trump since trade talks broke down ahead of an Aug. 1 tariff deadline. Carney’s office described Thursday’s conversation as “productive and wide-ranging,” with both leaders agreeing to reconvene soon.
A White House official called the Canadian move “long overdue” and said the administration looks forward to further talks on “trade and national security concerns.”
A reset after months of escalation
Canada had imposed 25% counter-tariffs in March on CA$30 billion (US$21.7 billion) worth of U.S. goods, following Washington’s 25% duties on steel and aluminum. Trump later announced plans to raise tariffs on Canadian imports to 35%, citing concerns over trade imbalances and Canada’s role in fentanyl trafficking.
According to U.S. Customs and Border Protection, agents seized 43 pounds of fentanyl at the northern border in 2024, with 58 pounds seized so far this year.
Carney, who succeeded Justin Trudeau as prime minister, has struck a more pragmatic tone on trade. In July, he posted on X that Canada was committed to finding a deal with Washington despite U.S. pressure.
USMCA review on the horizon
Friday’s announcement comes as the U.S.-Mexico-Canada Agreement (USMCA), negotiated by Trump during his first term, faces its scheduled review later this year. The agreement has been a central pillar of North American trade, but tariffs on sensitive sectors remain flashpoints.
For now, Canada’s partial rollback of tariffs signals progress — but steel, aluminum and autos remain at the heart of a dispute that could define U.S.-Canada trade relations heading into 2026.
