Amid difficult negotiations over a comprehensive agreement with the United States, the Canadian government is lifting numerous retaliatory tariffs.
Starting September 1, the country will adjust its tariffs on agricultural products, consumer goods and machinery, Prime Minister Mark Carney announced at a press conference in Ottawa on Friday.
With the easing of tariffs, Carney’s government hopes to inject new momentum into the stalled talks on a strategic agreement with the Trump administration.
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Steel, aluminum, auto tariffs to stay
Carney emphasized that Canada’s access to the U.S. market is currently comparatively good, with 85 per cent of bilateral trade already tariff-free.
“As we work to address outstanding trade issues with the U.S., it is important we do everything we can to preserve this unique advantage for Canadian workers and their families,” Carney said.
“Let’s be clear, Canada currently has the best trade deal with the United States,” he said. However he noted that punitive tariffs on U.S. cars, as well as on steel and aluminum, will remain in place.
The decision came a day after a phone call between Carney and US President Donald Trump, which the Ottawa government described as a “constructive conversation.”
Not cozying up to Trump says Carney
The neighbouring countries have been negotiating for months on an agreement that aims to combine economic and security policies, so far without success.
Carney rejected the notion that he was now cozying up to Trump to reach an agreement, using an ice hockey metaphor to make his point.
In some games, he said, it is necessary to set the tone early, to throw elbows and give opponents a hard time. Canada had done this successfully, he said.
Now, however, it was time to pass the puck to each other in order to finally score a goal.
