Canadian Prime Minister Mark Trudeau announced on Friday that the Canadian authorities are waiving a number of tariffs imposed in response to US tariffs on some US imports, according to The Globe and Mail.
“In accordance with our commitments under the United States-Mexico-Canada Agreement (USMCA), I am announcing today that the Canadian government will take measures similar to those taken earlier by the US and will remove tariffs on all US goods covered by the agreement,” the prime minister said.
However, Carnie clarified that Canada will maintain tariffs on US imports of steel, aluminum, and automobiles, and Ottawa will work intensively with Washington on this issue. Carney noted that following his conversation with US President Donald Trump this week, the two sides will engage in more active discussions on “challenges in strategic sectors” and on increasing cooperation in trade, investment, and security.
Carney also believes that Canada is making progress in trade negotiations with the US. “Canada currently has the best trade agreement with the US, and although it is different from what it was before, it is still better than any other country’s,” the prime minister said.
On August 1, Trump signed an executive order raising tariffs on Canada from 25% to 35%. The statement emphasized that goods covered by the preferential tariff regime under the USMCA remain exempt from the new tariffs.
In turn, The Globe and Mail reminds us that Ottawa is seeking an agreement that would reduce or eliminate tariffs on a number of Canadian goods. In July, Carnie acknowledged that Canada would probably not be able to convince Trump to cancel all tariffs.
At the same time, Canada implemented three rounds of retaliatory measures against the US. In the first round, it imposed 25% tariffs on US products worth $30 billion, including motorcycles and orange juice. The second round included 25% tariffs on another $30 billion worth of products, including metal products and consumer goods. The third round included 25% tariffs on cars, except for companies that have production facilities in Canada.
However, the publication notes that Canada subsequently softened the impact of the tariffs by approving certain exemptions, including for US-produced raw materials and components used in Canadian manufacturing.
