Canada will eliminate retaliatory tariffs on most US goods starting September 1st. However, tariffs on steel, aluminum, and automobiles will remain in place. The decision followed a phone conversation between Canadian Prime Minister Mark Carney and US President Donald Trump, after which Carney announced the removal of the tariffs. This move is expected to ease trade tensions between the two countries.
The announcement comes under the USMCA (United States-Mexico-Canada Agreement). It aligns with a recent decision to provide exemptions for all products covered by USMCA. USMCA came into effect on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). The agreement aims to strengthen economic ties between the US, Mexico, and Canada and to make trade more balanced.
