Canadian trade measures against American goods under CUSMA will be eliminated by Carney

Prime Minister Mark Carney announced on Monday that Canada will lift many of its retaliatory tariffs on US goods that fall under free trade rules. The move comes after the federal government rescinded its controversial digital services tax.

In a statement, Prime Minister Carney said, "Canada has the best deal with the United States right now, with a tariff rate of 5.5%. We are re-establishing free trade for the vast majority of our goods."

The Business Council of Canada and the Canadian Federation of Independent Businesses (CFIB) welcomed the removal of counter-tariffs, with the CFIB stating it will provide relief to small business owners. The move, they said, is a necessary step to preserve and strengthen Canada's preferential trade relationship with the US.

However, not all tariffs will be lifted immediately. Canadian counter-tariffs on US autos, steel, and aluminum will remain for now. Prime Minister Carney explained that the goal was to match US tariff policies while setting the stage for the current trade and security negotiations and next year's scheduled CUSMA review.

Conservative Leader Pierre Poilievre criticised the move, accusing Prime Minister Carney of putting "his elbows down" and "bending over backwards" to appease US President Trump amid the negotiations. Unifor national president Lana Payne urged Ottawa to maintain leverage until Trump drops all its tariffs.

Foreign Affairs Minister Anita Anand and US Secretary of State Marco Rubio held their first official meeting in Washington, discussing Ukraine, Gaza, Haiti, and China. Prime Minister Carney said he received assurances from Trump that the move will kickstart negotiations toward a new trade and security agreement.

Ontario Premier Doug Ford called on Ottawa to provide relief to sectors like steel, auto, forestry, and copper impacted by the tariffs. The Trudeau cabinet announced plans to intensify negotiations on the USMCA agreement by proposing enhanced bilateral discussions and seeking strategic cooperation to resolve outstanding trade issues.

The change will take effect starting next week, though data from the US Customs and Border Protection agency shows a minuscule amount of fentanyl is seized at the northern border compared to the border with Mexico, though seizures from Canada spiked this spring.

The move is a significant step in the ongoing trade relationship between Canada and the US. Both leaders have agreed to reconvene shortly to continue discussions.