Canada will remove retaliatory tariffs on a broad list of American products that comply with the U.S.-Mexico-Canada Agreement, a move aimed at easing trade tensions with Washington. Prime Minister Mark Carney is expected to announce the decision Friday following a cabinet meeting, according to Bloomberg.
The policy change means many U.S. consumer goods will no longer face Canada’s 25% import tax, provided shipments meet USMCA provisions. Ottawa will maintain duties on U.S. steel, aluminum, and automobiles, sectors where President Trump has imposed his own tariffs.
Officials said the decision is also meant to position Canada ahead of the upcoming USMCA review. “Canada’s counter-tariff regime will now emphasize the importance of that agreement,” one person familiar with the matter said.
The shift marks a significant departure from Canada’s earlier approach, when it was among the first to retaliate against U.S. protectionism — a strategy that had frustrated Trump and Commerce Secretary Howard Lutnick. Carney spoke with Trump by phone Thursday, their first publicly acknowledged call in weeks.
