Ottawa (Rajeev Sharma) : Prime Minister Mark Carney announced Friday that Canada will scrap all tariffs on goods from the United States covered under the Canada-U.S.-Mexico Agreement (CUSMA) by September 1.
Carney clarified that tariffs on steel, aluminum, and autos will remain in place as the Liberal government continues negotiations with Washington to define a new trading framework. Despite the ongoing trade war, he noted that 85 per cent of bilateral trade with the U.S. remains tariff-free, calling it a crucial advantage for Canadian industries and workers.
“As we work to address outstanding trade issues with the U.S., it is important we do everything we can to preserve this unique advantage for Canadian workers and their families,” Carney said.
The White House welcomed the decision, with an official describing the move as “long overdue” while expressing optimism about future talks on trade and security concerns.
Earlier this month, Carney suggested Canada might ease counter-tariffs to shield its industries from escalating tensions. The development follows U.S. President Donald Trump’s July 31 executive order, which raised tariffs on certain Canadian goods to 35 per cent starting August 1.
Washington said the hike was a response to fentanyl trafficking and Canada’s retaliatory measures. Ottawa has hit back with tariffs on U.S. products three times since the dispute began, targeting $60 billion worth of consumer goods and levying additional duties on American autos. The latest 35 per cent tariff rate applies only to items not protected under CUSMA.
