Canada to Lift Tariffs on U.S. Goods Covered by CUSMA

Canada will eliminate reciprocal import tariffs on U.S. goods covered under the Canada-U.S.-Mexico Agreement (CUSMA) starting 1 September, Prime Minister Mark Carney announced following a recent call with U.S. leadership.

While tariffs on steel, aluminium, and automobiles will remain in place, the move aims to preserve Canada’s trade advantage, with 85% of goods exchanged with the U.S. already tariff-free. Carney emphasized the importance of maintaining this status to support Canadian workers and industries.

The decision aligns with Canada’s commitment to CUSMA and follows assurances from the U.S. that compliant Canadian goods will not face additional tariffs. “Canada and the U.S. have now re-established free trade for the vast majority of our goods,” Carney stated.

The announcement comes in the wake of a U.S. executive order issued on 31 July that raised tariffs on select Canadian imports to 35%, citing national security concerns and fentanyl trafficking. Canada had responded with countermeasures, which are now being scaled back to facilitate renewed trade negotiations.

Both governments have signaled a willingness to intensify discussions aimed at resolving outstanding trade and security issues.