Canada to Scrap Retaliatory Tariffs on US Goods under New Trade Deal

Canadian Prime Minister Mark Carney has announced that his government will scrap retaliatory tariffs on American goods that comply with the Canada-U.S.-Mexico trade agreement, aiming to salvage Canada's economic relationship with the United States. This move comes as the country seeks to preserve its unique trade advantage while working on a revised Canada-United States-Mexico Agreement (CUSMA) and developing a new partnership with the US.

Key Takeaways:

• The Canadian government will retain tariffs on steel, aluminum, and autos, focusing on industries targeted by the US.
• The decision to scrap retaliatory tariffs comes after a phone call between Carney and US President Donald Trump, who expressed optimism about a long-term trade deal.
• Conservative Leader Pierre Poilievre criticized Carney's move, stating that the government should not have applied tariffs against US goods in the first place.
• The Canadian Chamber of Commerce emphasized the need for careful calibration of Ottawa's adjustments in close consultation with businesses.
• Unifor president Lana Payne argued that dropping counter-tariffs sends the wrong signal to the US and invites more aggression.

Statistics:

• The Canadian government imposed retaliatory tariffs on $30 billion worth of US goods.
• The US imposed tariffs on 35% of Canadian goods that do not comply with CUSMA.
• Nearly 6 in 10 small firms reported being hurt by Canada's counter-tariffs.

Sources:

• Toronto Star: "Carney scraps retaliatory tariffs on US goods in bid to salvage trade relationship"
• Canadian Press: "Carney says Canada has best trade deal with US, defends decision to drop tariffs"
• Canadian Federation of Independent Businesses: "Statement on Canada's Retaliatory Tariffs"
• Canadian Chamber of Commerce: "Statement on Ottawa's trade adjustments"
• Unifor: "Statement on Prime Minister Trudeau's announcement on trade"
• The Globe and Mail: "Canada rescinds digital services tax, wins praise from US"