Canada removes most retaliatory tariffs on USMCA-compliant goods

Canada will remove retaliatory tariffs on a wide range of US goods that comply with the USMCA, aligning its policy with American exemptions and signaling an effort to de-escalate trade tensions as talks with Washington continue. The move keeps Canadian duties in place on steel, aluminum and autos, but mirrors the United States’ approach for products that meet the trade agreement’s provisions. The decision was announced after a phone conversation between Prime Minister Mark Carney and President Donald Trump described as productive and wide-ranging, with officials signaling that Canada and the United States will remain in contact.

Under the plan, most retaliatory Canadian tariffs on US-origin goods that are eligible under the USMCA will be removed. The government says the adjustment is designed to restore free trade on the vast majority of Canada–US goods and to create a more predictable environment for businesses and consumers on both sides of the border. Carney stressed that the policy shift is intended to “match the exemptions the US has granted for Canadian goods under USMCA,” while acknowledging that tariffs on key sectors—steel, aluminum and autos—will remain in place for now.