Canada is taking a significant step in easing trade frictions with the United States by announcing the removal of many retaliatory tariffs on American goods which fall under the USMCA starting September 1, Prime Minister Mark Carney revealed during a press conference.
According to Carney, the average US tariff rate on Canadian exports is 5.6 percent, notably lower than the global average of 16 percent. He emphasized that 85 percent of Canada-US trade is already tariff-free, underlining the depth of integration between the two economies.
Steel and aluminum tensions remain
Despite the easing of tariffs on many goods, Canada will maintain its stance on steel and aluminum imports from the US. Carney reiterated that Canada is keeping its 25 percent tariff in place, a response to President Trump’s move to raise tariffs on Canadian steel and aluminum from 25 percent to 50 percent.