Overview

• Effective Sept. 1, Canada will drop counter-tariffs on U.S. goods that comply with USMCA/CUSMA, mirroring American exemptions.
• Tariffs on U.S. steel, aluminum and automobiles will remain as sector-specific disputes persist under separate U.S. national-security measures.
• The announcement came after what Ottawa described as a productive phone call between Prime Minister Mark Carney and President Donald Trump, with plans to reconvene.
• A White House official called the move "long overdue," while Unifor and opposition leader Pierre Poilievre denounced it as a capitulation.
• Ottawa notes more than 85% of bilateral trade is tariff-free under the pact and will launch consultations next month to prepare for the USMCA review.