Canada has officially removed many of its retaliatory tariffs on US products, a decision that could ease recent trade tensions between the two countries.
Prime Minister Mark Carney announced the move during a press conference on Friday, calling it a step toward renewed cooperation under the US-Mexico-Canada Agreement (USMCA).
The decision follows a phone call between Carney and President Donald Trump on Thursday. "We had a very good talk yesterday," President Trump told reporters Friday.
"It was nice of the prime minister to withdraw the Canadian tariffs. I like Carney a lot."
Back in March, Canada slapped 25% tariffs on a variety of US products, including alcohol, shoes, and clothing, CBS News said.
These were in response to US tariffs on Canadian steel and aluminum. Now, many of those products can enter Canada without extra fees starting September 1.
The White House welcomed Canada's move in a statement to CBS News, calling it "long overdue." Officials said the decision could help restart important discussions between the two countries around trade and national security.
Another Democrat BS tariff narrative blown to sht.
— Spitfire (@DogRightGirl) August 22, 2025
PM Carney announces Canada will drop its retaliatory tariffs against the United States.pic.twitter.com/rWBcwHtEkJ
Canada Keeps Tariffs on US Autos, Steel, and Aluminum
While the majority of tariffs have been lifted, Carney said that Canada will keep its 25% duties on US autos, steel, and aluminum for now.
"As we work intensively with the United States, our focus is squarely on the strategic sectors," Carney explained.
According to CNBC, the United States had recently increased pressure on Canada, including a July announcement by Trump to raise tariffs on Canadian goods to 35%.
He pointed to Canada's role in fentanyl trafficking and its lack of cooperation as major concerns.
US border agents say they've seized over 100 pounds of fentanyl at the northern border so far this year.
The call between Trump and Carney was their first since talks broke down ahead of the August 1 tariff deadline.
Carney's office called the discussion "productive and wide-ranging," noting that both leaders plan to speak again soon.
The rollback comes just before the scheduled USMCA review later this year. Carney believes Canada is well-positioned heading into negotiations.
"85% of our trade is already tariff-free," he noted. "I believe we have the best deal out of all the countries working with the US"
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