Go Ad Free

Prime Minister Mark Carney announced Friday his government’s intent to drop most retaliatory tariffs on the United States, effective September 21. This follows a mid-election notice that delayed the collection of border duties to October 7, amid failed trade talks.

“So let's be absolutely clear: Canada currently has the best trade deal with the United States,” Carney told reporters, noting he will keep in place Canadian tariffs on steel, aluminum and autos.

“We have the best deal of anyone in the world right now. We have the lowest tariff rate on average — a little over 5.5% versus the 16% average for the world, and in many cases much higher. It’s important that we preserve that.”

“It’s still better than any other country,” Carney reiterated, with claims of prioritizing Canadian workers and businesses.

“In this context and consistent with Canada's commitment,” the prime minister continued, “I'm announcing today that the Canadian government will … [be] removing all of Canada's tariffs on U.S. goods specifically covered under [this free trade agreement].”

Carney intends to leverage the revised USMCA and forge a new trade and security partnership with the U.S. government, with a review expected next year.

The elimination of counter-tariffs on U.S. goods comes a day after Carney's first conversation with President Trump since early summer. While the readout of their “productive and wide-ranging conversation” mentioned trade challenges, opportunities, and shared priorities, it omitted Carney’s proposal to remove the tariffs.

In a follow-up question, Carney dismissed the idea that Friday's announcement ended his 'Elbows Up' campaign. “I reject the premise of that question,” he replied. 

President Trump, in his second term, criticized Canada's trade practices while imposing three sets of tariffs to start: universal steel and aluminum tariffs (now 50%), tariffs on automobiles and parts, and Canada-Mexico-specific tariffs for border security and drug trafficking, some with USMCA exemptions.

Canada retaliated; however, Carney quietly backpedalled on most measures mid-snap election.

The former central banker and Brookfield chair stated his Liberal government "held out, not signing a deal we don't agree with ... and remain focused on strategic sectors that benefit Canada,” despite evidence to the contrary.

“We respect our agreement with the U.S. and are matching their actions,” Carney said, “which puts us in a good position for future negotiations."

Carney, seeking to mend relations, previously called Trump a "transformational president" and anticipated cooperation on fentanyl and trade.

U.S. tariffs on Canada remained after a failed White House meeting (May 6) and G7 Summit (Kananaskis), citing Canada's role in 80,000 American fentanyl deaths.

Despite Canada's $1.3 billion border security investment, a new fentanyl czar, and Bill C-2 to enhance border security and immigration, the White House remains unsatisfied.

Carney's efforts to secure a trade deal with Trump failed in the ensuing months, resulting in the delay of steel and aluminum counter-tariffs and a threat of 50% tariffs on Canadian copper being tabled. 

Trump temporarily halted talks on June 27 over Canada's Digital Services Tax, which Carney's cabinet scrapped on June 29. Carney admitted that repealing his $3.7 billion internet tax yielded no gains, despite claiming "progress towards a final deal."