From the New York Post: Prime Minister Mark Carney is scrapping Canada’s punishing tariffs on billions of dollars worth of American products in hopes of making trade peace with the Trump administration.
Carney will announce the sweeping policy shift Friday after a cabinet meeting, removing 25% tariffs on a vast range of US consumer goods that comply with the North American trade agreement, Bloomberg News reported.
The move represents a stunning about-face for Canada, which had been one of the few countries to aggressively punch back against President Donald Trump’s protectionist agenda.
The tariff rollback will spare American-made products like orange juice, wine, clothing and motorcycles from the steep import taxes that have been in place since March.
According to Bloomberg News, the rollback affects about $21.7 billion worth o U.S. goods.
However, Canada’s 25% tariffs on US steel, aluminum and automobiles has been left in place.
Carney announced the move on X: “Canada currently has the best trade deal with the United States. 85% of our exports to the U.S. are tariff-free. To preserve Canada’s unique advantage, we’re matching the U.S. by removing our tariffs on U.S. goods covered by CUSMA.”
Canada currently has the best trade deal with the United States. 85% of our exports to the U.S. are tariff-free.
To preserve Canada’s unique advantage, we’re matching the U.S. by removing our tariffs on U.S. goods covered by CUSMA.
— Mark Carney (@MarkJCarney) August 22, 2025
The sudden backdown on the tariffs reportedly comes just one day after Carney spoke to President Trump by phone.
On Thursday, Carney wrote in a post on X, “I had a productive and wide-ranging conversation with @POTUS this morning. We focused on trade challenges, opportunities, building a new economic and security relationship between Canada and the U.S., and supporting long-term peace and security for Ukraine and Europe.”
More on our call: https://t.co/ZXfH4Fyc0x
— Mark Carney (@MarkJCarney) August 21, 2025
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