Canada to drop counter-tariffs on U.S. goods covered by free trade agreement
Aug 23, 2025
Ottawa [Canada], August 23: Canadian Prime Minister Mark Carney said Friday that the country will lift its counter-tariffs on U.S. goods specifically covered under the Canada-U.S.-Mexico Agreement (CUSMA) starting Sept. 1.
Carney made the announcement on the prime minister's website, one day after he spoke by phone with U.S. President Donald Trump on Thursday.
"Canada will retain our tariffs on steel, aluminum and autos as we work intensively with the U.S. to resolve the issues there," according to the statement.
Canada and the United States have been in a trade war since the United States announced sweeping tariffs on Canadian goods in February.
Carney said the move to drop some counter-tariffs is meant to match U.S. levies by implementing a carve-out for goods covered by CUSMA.
The two leaders discussed on Thursday current trade challenges and opportunities, sharing priorities in a new economic and security relationship between the two countries.
Source: Xinhua News Agency
