Toronto,August 23(HS):
Canada will lift part of its retaliatory tariffs on US imports, Prime Minister Mark Carney announced Friday, in a bid to restore freer trade with Washington while holding firm on contentious sectors like autos, steel and aluminium.
The move follows Carney’s first phone call with President Donald Trump since the two countries missed a self-imposed deadline for a broader trade agreement. Ottawa had earlier slapped a 25% tariff on C$30bn ($21.7bn) worth of US products—ranging from orange juice to washing machines—in response to Trump’s tariffs, which currently impose a 35% levy on non-compliant Canadian goods.
From September 1, Canada will mirror the US by scrapping duties on goods covered under the US-Mexico-Canada Agreement (USMCA), restoring what Carney described as “free trade for the vast majority of cross-border goods.” But tariffs on steel, aluminium and automotive imports—sectors already hammered by job losses—will remain.
The White House welcomed the move as “long overdue,” although Trump’s ambassador to Canada warned last week that lingering counter-tariffs could still strain USMCA negotiations. Opposition leader Pierre Poilievre, meanwhile, blasted Carney for “capitulation,” accusing him of abandoning his tough bargaining stance.
Carney defended the decision, saying Canada still enjoys a lower effective tariff rate than most countries due to the USMCA exemption, and that preserving that “unique advantage” is critical for Canadian workers. Ottawa will now push to resolve disputes over metals, lumber and autos ahead of next year’s scheduled USMCA review.
Washington has imposed steep global tariffs this year—including 50% on steel, aluminium and copper—as part of Trump’s aggressive trade strategy. Economists warn Canada, a key supplier of metals to the US, faces mounting pressure, with Ontario’s auto-heavy economy already shedding 38,000 manufacturing jobs in just three months.
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Hindusthan Samachar / Jun Sarkar
