Canada signals tariff shift after Trump call

Canada will remove some duties on US goods starting September 1 while tariffs on steel, aluminum and autos stay in place.

Canada drops counter-tariffs after Trump call

Canada will remove some counter-tariffs on US goods that comply with the North American free-trade pact, effective September 1. Tariffs on steel, aluminum and autos will remain. The move follows a phone call between Mark Carney and Donald Trump and signals a possible thaw in a tense bilateral relationship. The White House has described the step as long overdue and says it will pave the way for further discussions on trade and national security concerns.

Ottawa notes that roughly 85 percent of Canada US trade is tariff-free, underscoring how deeply linked the two economies remain even amid protectionist moves. The decision is framed as preserving a competitive edge for Canadian workers and their families while continuing to press Washington on broader trade issues.

The move reads as pragmatic diplomacy. Ottawa seeks to keep leverage in a dispute that has stretched for years, while avoiding a broader concession that could trigger a larger backlash at home. The risk is that Washington keeps core sectors under pressure, leaving Canadian workers exposed and trade talks fragile.

Observers will watch whether this step unlocks durable talks or merely buys time. If the United States maintains a tough line on other tariffs or imposes new limits, the gains could be short lived and markets may demand clearer timelines and enforceable commitments.

Highlights

The road ahead will test whether promises translate into durable policy changes.