Canada to Drop Counter-Tariffs on Some American Goods as Trade War Eases

Strategic Insights -

Canada is set to drop some counter-tariffs on US goods, a move seen as a step towards ending the protracted trade war between the two countries. The Canadian government will remove levies on goods that comply with the North American free-trade pact, a move aimed at "matching" the treatment of Canadian goods by the White House. This decision comes after a phone call between Mark Carney and Donald Trump, where they discussed ongoing trade issues.

Key Takeaways:

  • The Canadian government will drop counter-tariffs on some US goods, effective from 1 September, in an effort to ease trade tensions with the US.
  • The levies on steel, aluminum, and autos will remain in place.
  • Mark Carney stated that 85% of Canada's trade with the US is tariff-free, emphasizing the country's unique trade advantage with its southern neighbor.
  • Carney also noted that Canada has the best trade deal with the US, compared to other countries.
  • The Canadian government has imposed retaliatory tariffs on US goods three times, covering $60 billion worth of consumer goods, including American-made cars.
  • The governing Liberal party has pledged support for sectors disproportionately affected by American protectionism, aiming to reduce Canada's reliance on the US as a trading partner.
  • The decision is seen as a step towards ending the trade war, but details on the future of the relationship between the two nations remain unclear.

Statistics:

  • 85% of Canada's trade with the US is tariff-free (Mark Carney)
  • Canada has imposed retaliatory tariffs on US goods three times, covering $60 billion worth of consumer goods
  • The US has imposed tariffs on Canadian steel, aluminum, autos, copper, lumber, and energy
  • The trade war between Canada and the US has chilled relations between the two nations, despite them being natural allies on trade and defense

Sources:

  • "Canada 'to drop counter-tariffs on some US goods', Mark Carney says" by Leyland Cecco in Toronto Canada (no date given)
  • "Mark Carney calls US trade tariffs a 'goad'" by no author (no date given)
  • "Canada and US fail to reach trade deal" by no author (no date given)