Following talks between Canadian Prime Minister Mark Carney and US President Donald Trump, Canada has decided to lift retaliatory tariffs on the majority of American goods, effective September 1st. However, the existing tariffs on steel, aluminum, and automobiles will be maintained. This decision is a result of the ongoing USMCA framework and the exemption of USMCA covered products. The USMCA agreement, which replaced NAFTA on July 1, 2020, seeks to strengthen economic relationships among the US, Mexico, and Canada, aiming for balanced trade.
Carney expressed that this move will help expedite the ongoing trade negotiations with the US. He also highlighted that the current trade agreement with the US is more advantageous than any other agreement Canada has with another nation. Trump described the conversation as productive and expressed a desire for a positive relationship with Canada.