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Canada Rolls Back Retaliatory Tariffs on Most U.S. Goods, Keeps Levies on Steel, Aluminum and Autos

The move mirrors U.S. carve-outs for CUSMA-compliant products.

Canada's Prime Minister Mark Carney, listens as President Donald Trump speaks during a group photo at the G7 Summit, Monday, June 16, 2025, in Kananaskis, Canada. (AP Photo/Mark Schiefelbein)
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Overview

  • Effective Sept. 1, Canada will remove 25% counter-tariffs on U.S. imports that meet CUSMA rules of origin, while maintaining duties on steel, aluminum and automobiles.
  • Prime Minister Mark Carney said talks with Washington will intensify after his “productive” call with President Donald Trump, and both leaders agreed to reconvene soon.
  • A White House official welcomed the step as “long overdue,” signaling openness to continue discussions on trade and national security concerns.
  • Foreign Affairs Minister Anita Anand met Secretary of State Marco Rubio in Washington for their first official meeting as part of a broader dialogue that also covers Ukraine, Haiti, Gaza and China.
  • The U.S. raised a 35% blanket tariff on non‑CUSMA‑compliant Canadian goods on Aug. 1 with carve-outs preserving tariff‑free trade for most goods, and Canada will start consultations next month ahead of the mandated CUSMA review.