Canada to Lift Many Retaliatory Tariffs on U.S. Goods, Carney Says
- The New York Editorial Desk - Arif
- Aug 22
- 2 min read
Tone & Political Bias: Center-leaning
Why: The reporting is straightforward, fact-based, and does not favor either the Canadian or U.S. side. It presents quotes from both governments and opposition voices, keeping a neutral balance.
Canada Eases Trade Tensions
Prime Minister Mark Carney announced Friday that Canada will remove many retaliatory tariffs on U.S. goods, signaling a shift toward a more cooperative trade relationship with Washington. The move will not affect tariffs on U.S. autos, steel, and aluminum, which remain in place for now.
What Carney Said
Carney framed the decision as part of Canada’s commitment to the U.S.-Mexico-Canada Agreement (USMCA).
He said the United States confirmed it would not impose new tariffs on Canadian goods compliant with the pact.
“Canada and the U.S. have now re-established free trade for the vast majority of our goods,” Carney told reporters in Ottawa.
He emphasized that Canadian exports still face fewer U.S. tariffs than most trading partners.
The announcement helped strengthen the Canadian dollar, which rose 0.5% to C$1.3837 per U.S. dollar by early afternoon trading.
U.S. Reaction
The White House welcomed the move, calling it “long overdue.” A U.S. official said Washington looks forward to continuing discussions on broader trade and national security concerns.
Carney said he had spoken with President Donald Trump on Thursday. When asked if Trump tied tariff relief to restarting negotiations, Carney replied, “Yes.”
A Shift in Tone
Carney campaigned in April on standing firm against U.S. tariffs. But since taking office, he has softened his stance.
In June, he dropped plans for a digital services tax disliked by U.S. tech firms.
In July, he stopped threatening new sanctions after an August 1 deadline passed without a deal.
On Friday, he used an ice hockey analogy to explain the new approach: it was time to play moderately rather than aggressively.
“Let’s be clear, we have the best deal of anyone in the world right now,” he said. “Nobody has a deal with the United States that they used to have.”
Political Risks at Home
Carney’s move may trigger political challenges. His Liberal Party holds only a minority of seats in Canada’s House of Commons and depends on opposition support to survive key votes.
The Conservative leader this week accused Carney of being too soft on the United States.
His predecessor, Justin Trudeau, had imposed 25% tariffs on C$30 billion in U.S. goods in March 2025 after Trump’s initial duties.
At the time, Canada had announced a broader plan to target C$155 billion in imports, though most of that retaliation was delayed.
Talks Still Ongoing
Despite the tariff rollback, Canada and the United States remain far from reaching a comprehensive economic and security agreement. Discussions have been ongoing for months with limited progress.
Canada and China have been the only nations to respond to U.S. tariffs with countermeasures, a point that has frustrated Washington.
Carney acknowledged the challenge but stressed the importance of cooperation: “We are intensifying contacts with the United States to build a new trade and security relationship.”
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