Prime Minister Mark Carney announced Canada will remove retaliatory 25 per cent tariffs on CUSMA-compliant U.S. goods.
Carney will maintain tariffs on steel, aluminum and autos as the Liberal government continues negotiations with the U.S.
U.S. President Donald Trump commended the tariff removal, calling it “nice” and saying he wanted to “be good to Canada.”
Trump raised tariffs on some Canadian goods to 35 per cent on Aug. 1.
The Trump administration had said Canada’s rate was being hiked in response to fentanyl trafficking and Canada’s earlier decision to hit back with counter-tariffs.
Business groups reacted positively, though some appear to have been surprised by the news.
Conservative Leader Pierre Poilievre said Carney is “showing weakness” by making concessions to the U.S.
Also Alberta Premier Danielle Smith, who is often aligned with Poilievre, welcomed the decision, as did former Conservative leader Erin O’Toole. But Ontario Premier Doug Ford wants retaliation if a deal isn’t struck soon.
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