Canada’s government has removed most of its retaliatory tariffs on U.S. imports as it seeks trade peace with America.
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In March, Canada’s federal government in Ottawa imposed counter-tariffs of 25% on a long list of U.S. products after America announced 25% duties on Canadian steel and aluminum imports. But now, Canadian Prime Minister Mark Carney says most of the retaliatory tariffs are being removed.
The announcement by Prime Minister Carney follows a phone call between him and U.S. President Donald Trump, the first known discussion between the two leaders since previous trade talks failed ahead of an Aug. 1 tariff deadline. A readout of the phone call between Prime Minister Carney and President Trump called the discussion “productive.”
Steel and Aluminum
Exactly which retaliatory tariffs are being removed by Canada aren’t immediately known. However, Prime Minister Carney said at a press conference that Canada’s current 25% duties on U.S. vehicles, steel, and aluminum products will remain in place for the time being. All other changes will go into effect on Sept. 1 of this year.
Carney added that President Trump assured him on their phone call that dropping retaliatory tariffs will restart negotiations between the two countries. Canada was swift to impose counter-tariffs on $21.7 billion worth of U.S. goods earlier this year. In July, President Trump announced he would raise tariffs on Canada to 35%.
The tariff spat between the neighboring countries occurs with the existing U.S.-Mexico-Canada Agreement on trade scheduled to undergo a review later this year.
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