Canada intends to eliminate tariffs on American products under the purview of their free trade agreement.
Canadian Prime Minister Mark Carney announced on August 22, 2025, that Canada will lift its counter-tariffs on US goods covered under the Canada-US-Mexico Agreement (CUSMA) starting September 1, 2025.
The announcement comes after a phone conversation between Prime Minister Carney and US President Donald Trump on August 21, 2025, during which they discussed current trade challenges and opportunities.
The tariff lift is part of an effort to resolve issues with the US. It is intended to match the US levies and is a move by Canada to be in line with the United States.
The trade war between Canada and the United States began in February 2025. However, with this announcement, Canada and Mexico, which are part of the CUSMA, decided to lift some retaliatory tariffs on US-produced goods covered by the agreement as part of ongoing trade conflict resolutions.
This exemption from reciprocal additional tariffs applies specifically to imports under the CUSMA framework. It is important to note that the tariff lift does not apply to steel, aluminum, and auto products, which will continue to be subject to tariffs.
Canadian Prime Minister Mark Carney made the announcement on his official website, where he discussed the current trade challenges and opportunities, sharing priorities in a new economic and security relationship between the two countries.
The tariff lift pertains specifically to US goods covered under the CUSMA. This means that goods not covered by the CUSMA will still be subject to tariffs.
The move by Canada is intended to foster a more positive and cooperative trade relationship with the US, as both countries work intensively to resolve the issues that arose during the trade war. The tariff lift is a significant step towards resolving the trade conflict and strengthening the economic ties between Canada and the US.
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