Canada drops many of its retaliatory tariffs on US after Trump-Carney phone call

Canada has dropped several retaliatory tariffs on the US after Prime Minister Mark Carney held a phone call with President Donald Trump, signalling an improvement in ties between the two countries.

In March, Canada imposed a 25 per cent retaliatory tariff on Washington following Trump’s announcement of duties on Canadian steel and aluminium imports. Carney has said that Canadian tariffs on US autos, steel and aluminium will stay in place for now.

The removal of some counter tariffs will go into effect on September 1, the prime minister said, adding that Canada has the best trade deal with the US of all other countries. “As we work intensively with the United States, our focus is squarely on the strategic sectors,” he said.

A White House official told NBC News that Ottawa’s action was “long overdue”. The official said, “We look forward to continuing our discussions with Canada on the Administration’s trade and national security concerns.”

Under then-Prime Minister Justin Trudeau, Canada quickly responded to US trade actions by imposing counter-tariffs on CA$30 billion (US$21.7 billion) worth of American goods. In July, former President Donald Trump announced plans to raise tariffs on Canadian imports to 35 per cent, citing the surge in fentanyl and what he described as Canada’s reluctance to cooperate with the US as key reasons for the move.

Canada and Mexico team up

Mexico and Canada are looking at ways to team up against their neighbour US, which began the relentless trade war by pushing the two countries to the battlefield.

Canada’s foreign affairs minister, Anita Anand, and Finance Minister François-Philippe Champagne visited Mexico earlier this month to meet President Claudia Sheinbaum and make preparations for an upcoming visit by Prime Minister Mark Carney to the country for talks.

“It’s very much an all-hands-on-deck approach to ensure that we are kick-starting,” Anand told reporters, while Champagne added, “It sends a very strong signal when you have the foreign minister of a country and the finance minister come.”