Canada Lifts Some US Tariffs After Trump Call

By Staff, Agencies

Canada will drop its counter-tariffs on some American goods in the coming days, Mark Carney has said, as the country’s prime minister looks to end a protracted trade war with longtime ally the United States.

From 1 September, the Canadian government will remove some levies on US goods that comply with the North American free-trade pact, a move meant to “match” how the White House treated Canadian goods. Levies on steel, aluminum and autos will remain in place.

The announcement comes one day after Carney and Donald Trump spoke on the phone.

In recent months, the US has upended global trade as it seeks to bring manufacturing jobs back and sign more favorable deals with trading partners.

Carney said despite the global turmoil and American tariffs on Canadian steel, aluminum, autos, copper, lumber and energy, 85% of Canada’s trade with its southern neighbor was tariff-free.

He emphasized that Canada has the best US trade deal, stressing the need to protect this advantage while resolving outstanding trade issues.

Trump’s tariff moves sparked a trade war earlier this year, straining the once-close US-Canada alliance on trade and defense.

Canada has imposed retaliatory tariffs on $60bn of US goods, including American-made cars, and pledged support for sectors hit by US protectionism to reduce reliance on the US.

Despite recent talks, Canada and the US missed Trump’s August 1 deadline for a deal. Carney said it’s unlikely Trump will drop all tariffs, viewing them as a strong bargaining tool.

In a statement, the White House called the move “long overdue” and said Carney’s overture paved the way for “continuing our discussions with Canada on the administration’s trade and national security concerns”.