Prime Minister Mark Carney says most Canadian goods will be exempted from US tariffs while some sectoral duties remain.
Canadian Prime Minister Mark Carney has said that his country will drop retaliatory tariffs in tandem with tariff exemptions offered by the United States, as the two ease away from their costly trade war.
Speaking to reporters on Friday, Carney said that the US clarified that it will not impose tariffs on Canadian goods that comply with the US-Mexico-Canada free trade agreement. Some tariffs on sectors such as steel, aluminium, and cars will remain in place.
“In this context and consistent with Canada’s commitment to USMCA, I am announcing today that the Canadian government will now match the United States by removing all of Canada’s tariffs on US goods specifically covered under USMCA,” said Carney, noting that the change would take effect on September 1.
“Canada and the US have now re-established free trade for the vast majority of our goods,” he added.
The Canadian leader, who won office in April amid widespread anger towards the administration of US President Donald Trump’s imposition of severe tariffs on Canada, admitted that trade between the two countries is not likely to return to previous levels of integration, but that he had obtained the best deal possible under the circumstances.
The Trump administration praised the decision on Friday.
“We welcome this move by Canada, which is long overdue. We look forward to continuing our discussions with Canada on the Administration’s trade and national security concerns,” a White House official said.
Carney faced a series of questions from reporters asking if he had effectively folded in the face of US economic pressure, with several pointing to his frequent use of the slogan “elbows up” on the campaign trail.
The term is a hockey reference suggesting an aggressively protective posture, and embodied Carney’s promise to take a tough stance against the Trump administration.
The Canadian leader said that his country is not the only one working to reorient itself as the Trump administration upends decades of economic integration with countries around the world.
“Canada currently has the best trade deal with the United States,” Carney said of the agreement, stating several times that Canada was “matching” moves from the US. “And while it’s different from what we had before, it’s still better than that of any other country.”
