Canada Rolls Back Tariffs on Most U.S. Goods

Canadian Prime Minister Mark Carney spoke to President Donald Trump this week for the first time since June. (Dave Chan / AFP / Getty Images)

Canada will drop its retaliatory tariffs on most U.S. goods on Sept. 1, Prime Minister Mark Carney announced after a cabinet meeting on Friday.

The tariff rate is currently 25% on U.S. goods imported to Canada.

Once the rollback is implemented, U.S. goods imported into Canada that are covered by the U.S.-Mexico-Canada trade agreement will be exempt from tariffs.

“Canada currently has the best trade deal with the U.S.,” Carney said. “While it is different than it was before, it is still better than any other country.”

The announcement came after Carney spoke with President Donald Trump on Thursday. It was the first time the leaders had spoken in several months.

“We see the opportunity to build on our relationship,” Carney said.

Canadian tariffs on steel and aluminum imported from the U.S. will remain in place. Carney said rolling back most tariffs while maintaining pressure around steel and aluminum puts Canada “in a better position” for the sector-specific trade negotiations expected ahead of the USMCA trade agreement review next year.

When asked about Canada on Friday, Trump said: “We want to be very good to Canada. I like Carney a lot,” adding that the two “had a very good talk.”

Write to Emily Russell at emily.russell@barrons.com