Carney highlighted the necessity of preserving Canada’s trade advantages while navigating the delicate negotiations that directly affect Canadian businesses and employment.
Canada Eases Retaliatory Tariffs on US Goods Amid Trade Negotiations
Canada Eases Retaliatory Tariffs on US Goods Amid Trade Negotiations
Canada's Prime Minister Mark Carney announces the removal of certain retaliatory tariffs against US products, reshaping trade dynamics.
In a major shift in trade relations, Canada will drop several retaliatory tariffs on US goods while retaining key levies on autos, steel, and aluminum. This decision follows a recent conversation between Prime Minister Mark Carney and US President Donald Trump regarding stalled trade negotiations. Canada had previously imposed a 25% tax on around C$30 billion worth of US imports, including orange juice and washing machines, as a reaction to US tariffs on Canadian goods. Carney's announcement indicates a move to align Canada’s tariffs with those of the US under the US-Mexico-Canada free trade agreement (USMCA). The tariff reduction is slated to take effect on September 1. However, the Canadian Conservative party leader has criticized this as a retreat, while Carney insists that it maintains a competitive edge for Canadian trade. The conversation now includes addressing contentious sectors like automobiles and steel as both countries prepare for a review of the USMCA next year. The economic implications are significant, as current US tariffs on steel and other imports threaten to disrupt the Canadian economy and its manufacturing sector.
