Canada will drop many retaliatory tariffs on US goods starting September 1st, except for autos, steel, and aluminum. This follows a phone call between Prime Minister Carney and President Trump. The move, welcomed by the White House, largely re-establishes free trade between the two countries under the USMCA agreement. Canada maintains tariffs on steel, aluminum, and autos, focusing future negotiations on these sectors. While polls show Canadian support for tariffs, Carney argues this deal offers Canada a better trade position than other countries.

Prepared by Rachel Morgan and reviewed by editorial team.