Canada plans to eliminate some counter-tariffs on select American products starting September 1, according to Mark Carney, as part of efforts to resolve ongoing trade tensions with the United States. This adjustment will align with how U.S. tariffs are applied to Canadian goods under the North American Free Trade Agreement (NAFTA), although tariffs on steel, aluminum, and automotive products will remain unchanged.
The announcement follows a recent phone conversation between Carney and U.S. President Donald Trump. In the past few months, the U.S. has altered global trade dynamics in an effort to bring manufacturing jobs back to the country and to negotiate more favorable trade agreements. Carney noted that despite existing tariffs on various Canadian goods—including steel, aluminum, and energy—approximately 85% of trade between Canada and the U.S. still occurs tariff-free.
Carney emphasized that Canada currently has a favorable trade agreement with the U.S., despite modifications over time. He stated that it is crucial to address ongoing trade challenges while maintaining advantages for Canadian workers.
The trade relations between the U.S. and Canada have faced strain recently, particularly due to aggressive U.S. tariff policies that led to a series of retaliatory measures from Canada. Despite these tensions, which included the imposition of $60 billion in counter-tariffs on U.S. goods, the response from the White House described Canada’s latest move as “long overdue.” This step is seen as an opportunity to facilitate ongoing discussions regarding trade and national security concerns between the two nations.
As the situation develops, questions remain about how these actions will influence future trade negotiations and the overall relationship between Canada and the U.S.
Source: https://www.theguardian.com/world/2025/aug/22/canada-counter-tariffs-trump