As part of the ongoing efforts to improve trade relations, Canada will remove retaliatory tariffs on most American goods starting September 1st. Tariffs on steel, aluminum, and automotive products are excluded from this measure. The commitment to remove tariffs was made public after a discussion between Canadian Prime Minister Mark Carney and US President Donald Trump. This decision is directly related to the USMCA agreement, which replaced NAFTA on July 1, 2020. The USMCA is designed to bolster economic ties and establish more equitable trade between the United States, Mexico, and Canada.
Carney anticipates this action will accelerate trade talks with the US.