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Canada's Prime Minister Mark Carney has announced that the country will roll back certain retaliatory tariffs on U.S. imports, a decision that signals a shift in trade strategy following a phone conversation with President Donald Trump. Effective September 1, the changes will eliminate existing tariffs on U.S. products that align with the US-Mexico-Canada Agreement (USMCA) while keeping significant levies on autos, steel, and aluminum.
Previously, Canada imposed a 25% tariff on approximately C$30 billion worth of American goods, targeting everyday items like orange juice and washing machines. This was a direct response to U.S. tariffs, which have seen a 35% increase on products not compliant with existing trade agreements.
In his announcement, Carney emphasized that this adjustment is designed to re-establish free trade where possible, stating it should benefit the majority of cross-border trade. The White House welcomed the news, referring to it as "long overdue" and expressing eagerness for ongoing discussions related to trade and national security.
Polling in Canada indicates that a majority of citizens support the imposition of tariffs on U.S. goods. Carney, who promoted an aggressive negotiation strategy during his election campaign, defended the decision by highlighting that Canada maintains a more favorable tariff environment compared to numerous other countries, with an effective rate of approximately 5.6%.
Looking ahead, Carney mentioned that Canada's focus will be on expediting talks regarding tariffs on vital sectors such as autos, steel, aluminum, and lumber, especially with a USMCA review on the horizon next year. The context for these tariffs includes Trump's more extensive global trade strategy, marked by increasing levies on a variety of imported goods. As negotiations evolve, the Canadian government aims to safeguard the interests of its workers and businesses within this delicate trade landscape.
Canada's Prime Minister Mark Carney has announced that the country will roll back certain retaliatory tariffs on U.S. imports, a decision that signals a shift in trade strategy following a phone conversation with President Donald Trump. Effective September 1, the changes will eliminate existing tariffs on U.S. products that align with the US-Mexico-Canada Agreement (USMCA) while keeping significant levies on autos, steel, and aluminum.
Previously, Canada imposed a 25% tariff on approximately C$30 billion worth of American goods, targeting everyday items like orange juice and washing machines. This was a direct response to U.S. tariffs, which have seen a 35% increase on products not compliant with existing trade agreements.
In his announcement, Carney emphasized that this adjustment is designed to re-establish free trade where possible, stating it should benefit the majority of cross-border trade. The White House welcomed the news, referring to it as "long overdue" and expressing eagerness for ongoing discussions related to trade and national security.
Polling in Canada indicates that a majority of citizens support the imposition of tariffs on U.S. goods. Carney, who promoted an aggressive negotiation strategy during his election campaign, defended the decision by highlighting that Canada maintains a more favorable tariff environment compared to numerous other countries, with an effective rate of approximately 5.6%.
Looking ahead, Carney mentioned that Canada's focus will be on expediting talks regarding tariffs on vital sectors such as autos, steel, aluminum, and lumber, especially with a USMCA review on the horizon next year. The context for these tariffs includes Trump's more extensive global trade strategy, marked by increasing levies on a variety of imported goods. As negotiations evolve, the Canadian government aims to safeguard the interests of its workers and businesses within this delicate trade landscape.
