JUST IN: Canada DROPS retaliatory tariffs on most U.S. goods
The neighboring nation announced the elimination of most retaliatory tariffs on U.S. goods amid President Trump’s tough trade negotiations
by Summer Lane | August 22, 2025
In another massive win on trade for President Trump, Canada will drop most of its retaliatory tariffs against the United States.
Canadian tariffs on U.S. automobiles, steel, and aluminum will remain in place.
Canadian Prime Minister Mark Carney held a press conference on Friday confirming the tariff policy change, highlighting the importance of maintaining a healthy economic relationship with the United States, amidst Trump’s hardline trade policies.
“To these ends, the United States has announced a series of trade actions,” Carney acknowledged in his remarks, noting the high tariffs put on Canadian goods by Trump.
Carney lightly criticized the U.S. of forcing countries to “buy access” to participate in trade with America and acknowledged his own country’s use of retaliatory tariffs in response.
“Canada currently has the best trade deal with the United States,” Carney said.
“I’m announcing today that the Canadian government will now match the United States by removing all of Canada’s tariffs on U.S. goods specifically covered under CUSMA,” he continued.
CUSMA is the Canada-United States-Mexico Agreement, which aims to strengthen the economic ties between the three countries.
This newest development on Canadian tariffs comes on the heels of months of back-and-forth between the U.S. and Canada. Just two months ago, Trump temporarily terminated trade discussions with the country, citing an “egregious” Digital Services Tax.
“We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven-day period. Thank you for your attention to this matter!” Trump wrote on Truth Social at that time.
Canada’s new tariff policies will take effect on September 1, Carney said.
Photo: Adobe Stock
