Canada is dropping many retaliatory tariffs on US goods, mirroring US exemptions under the USMCA trade deal. Prime Minister Carney framed this as a strategic move, highlighting Canada's already advantageous trade position with the US and stating that the move will jumpstart further trade talks. While some Canadian politicians and unions criticized the decision as capitulation, Carney emphasized that over 85% of Canada-US trade remains tariff-free. Tariffs on steel, aluminum, and autos will remain, and the USMCA will be reviewed in 2026. The move follows a phone call between Carney and President Trump, who expressed a desire for improved US-Canada relations.

Prepared by Christopher Adams and reviewed by editorial team.