August 22, 2025
RED FM News Desk
Prime Minister Mark Carney announced on Friday that Canada will be removing some of its retaliatory tariffs on American goods. This decision is being made to align with the tariff exemptions the U.S. has in place for products covered under the Canada-United States-Mexico Agreement (CUSMA). The change will take effect on September 1, 2025.
Carney made the announcement at a news conference after a meeting with his cabinet and a call with U.S. President Donald Trump. Carney confirmed that Trump had assured him that dropping the countermeasures would help restart trade negotiations between the two countries.
While many tariffs will be lifted, Carney stated that Canada will keep tariffs on American steel, aluminum, and autos as discussions with the U.S. continue to resolve issues in these “strategic sectors.”
Carney emphasized that Canada currently holds the best trade deal with the United States. He noted that the average U.S. tariff rate on Canadian goods is just 5.6%, which is the lowest among all its trading partners. This is in stark contrast to the global average U.S. tariff rate, which has jumped from just over 2% to nearly 16% since the end of last year.
In Washington, D.C., President Trump called Carney’s decision “nice” and said he had a “very good call” with the prime minister. Trump stated he was “fighting for the United States” but wants to be “very good to Canada” and is “working on something.”
A White House official described Canada’s move as “long overdue” and said they looked forward to continued discussions on trade and national security.
Loading ...
