Overview

• Effective Sept. 1, Ottawa will lift many counter-tariffs on U.S. products that meet USMCA rules, matching Washington’s exemptions.
• Canada will keep 25% retaliatory levies on steel, aluminum and automobiles as sector-specific negotiations continue.
• The announcement followed the leaders’ first phone call in months, which the Prime Minister’s Office described as productive.
• A White House official called the step “long overdue,” while labor leaders and opposition politicians in Canada criticized it as a capitulation.
• Carney said over 85% of bilateral trade is tariff‑free under USMCA and signaled preparations for the agreement’s upcoming review.