Canada to Lift Some Retaliatory Tariffs on U.S. Goods, Keeps Levies on Autos and Metals

Ottawa, The Gulf Observer: Canadian Prime Minister Mark Carney announced on Friday that Ottawa will remove a portion of its retaliatory tariffs on U.S. goods, while maintaining duties on automobiles, steel, and aluminium, media reported.

The decision follows Carney’s first phone call with U.S. President Donald Trump on Thursday, after the two sides missed a self-imposed deadline to conclude a trade agreement.

Canada had earlier imposed a 25 percent tariff on approximately C$30 billion (£16 billion; $21.7 billion) worth of U.S. imports, including products such as orange juice and washing machines. The measures were a response to Washington’s 35 percent tariffs on Canadian goods not compliant with the United States-Mexico-Canada Agreement (USMCA).

Carney said Ottawa will now align with Washington by ending tariffs on goods covered under the USMCA framework, a move he said would “re-establish free trade for the vast majority” of products moving between the two countries. The change will take effect on September 1.

In a statement to CBS, the White House welcomed the decision as “long overdue” and expressed readiness to continue discussions with Canada on trade and security. Trump told reporters he expects to speak again with Carney soon.

Canada is one of only two countries — alongside China — to impose retaliatory levies on U.S. goods in response to Trump’s global trade tariffs. Polls suggest that most Canadians support such countermeasures.

Carney, elected in April on a pledge to take a tough stance with Washington, defended his decision, noting that Canadian goods face an effective tariff rate of just 5.6 percent, compared to an average of around 16 percent for other countries.

“As we work to address outstanding trade issues with the U.S., it’s important we do everything we can to preserve this unique advantage for Canadian workers and businesses,” he said.

Conservative leader Pierre Poilievre criticized the move, saying Carney had backed down. “It is yet another capitulation and climb down by Mark Carney,” he remarked, accusing the prime minister of abandoning his “elbows up” negotiating style.