Canada will lift a large share of its retaliatory tariffs on U.S. imports starting Sept. 1, Prime Minister Mark Carney announced Friday, but duties on autos, steel and aluminum will stay in place.
Carney said the decision is aimed at clearing a path for renewed negotiations. “As we work intensively with the United States, our focus is squarely on the strategic sectors,” he told reporters.
The announcement followed a Thursday call between Carney and President Donald Trump, the first direct conversation between the two leaders since missed talks earlier this month. Carney said Trump gave assurances that scaling back the tariffs would help restart trade discussions.
A White House official called the move “long overdue” and said the administration would continue talks on trade and national security concerns.
Canada first imposed CA$30 billion (US$21.7 billion) in counter-tariffs in March after Washington levied 25% duties on steel and aluminum. Trump later raised tariffs on Canadian goods to 35% in July, citing drug enforcement issues and trade disputes. U.S. Customs and Border Protection reported 43 pounds of fentanyl seized at the northern border in 2024 and 58 pounds so far this year. The timing matters: the U.S.-Mexico-Canada Agreement is due for review later in 2025, a process that could reshape trade terms across North America.
