Prime Minister Mark Carney announced that Canada will remove all of Canada's countermeasure tariffs on U.S. goods specifically covered under the Canada-United States-Mexico Agreement (CUSMA). This decision will take effect on September 1, 2025.
The Prime Minister stated: "In a positive development, earlier this month, the United States reaffirmed a core commitment to our free trade agreement, Canada-United States-Mexico Agreement (CUSMA), by reinforcing that those Canadian exports to the United States that are compliant with CUSMA will not be subject to U.S. IEEPA tariffs. As a result, the actual U.S. average tariff rate on Canadian goods is 5.6% and remains the lowest among all its trading partners, and more than 85% of Canada-U.S. trade is now tariff-free."
Canada will maintain tariffs on steel, aluminum and automobiles as the government works with the U.S. to craft a new trading relationship between the two countries.