{"id":1545,"date":"2025-08-23T05:11:54","date_gmt":"2025-08-23T05:11:54","guid":{"rendered":"https:\/\/blog.cedritech.com\/?p=1545"},"modified":"2025-08-23T05:11:54","modified_gmt":"2025-08-23T05:11:54","slug":"canada-to-drop-many-counter-tariffs-in-olive-branch-to-trump","status":"publish","type":"post","link":"https:\/\/blog.cedritech.com\/?p=1545","title":{"rendered":"Canada to Drop Many Counter-Tariffs in Olive Branch to Trump"},"content":{"rendered":"<p><span class=\"news-dateline\">(Bloomberg) &#8212;<\/span>\u00a0Canada will remove its retaliatory tariffs on a long list of US products that comply with the existing North American trade deal, seeking to lower tensions with the White House.<\/p>\n<p>Prime Minister Mark Carney announced the decision Friday after a meeting with his cabinet, confirming an earlier report from Bloomberg News.<\/p>\n<div class=\"caas-da \">\n<div id=\"sda-LREC1-b6ba609f-032d-32d7-be73-9af690b480fa1755924710907\" class=\"caas-sda-benji-ad caas-sda-gam-container-mid-center caas-sda-gam-container-mid-center-small wafer-destroyed\" data-wf-benji-page-context=\"{&quot;pageUrl&quot;:&quot;https:\/\/finance.yahoo.com\/news\/canada-drop-many-retaliatory-tariffs-144721808.html&quot;,&quot;spaceid&quot;:&quot;1197618800&quot;,&quot;site&quot;:&quot;news&quot;,&quot;hashtag&quot;:&quot;news;politics&quot;,&quot;lmsid&quot;:&quot;a0a6T00000UABPIQA5&quot;,&quot;lpstaid&quot;:&quot;b6ba609f-032d-32d7-be73-9af690b480fa&quot;,&quot;pt&quot;:&quot;content&quot;,&quot;pd&quot;:&quot;modal&quot;,&quot;pct&quot;:&quot;story&quot;}\" data-wf-benji-wafer-config=\"{}\" data-wf-benji-config=\"{&quot;positions&quot;:{&quot;LREC1-b6ba609f-032d-32d7-be73-9af690b480fa1755924710907&quot;:{&quot;id&quot;:&quot;LREC1-b6ba609f-032d-32d7-be73-9af690b480fa1755924710907&quot;,&quot;path&quot;:&quot;\/22888152279\/us\/ynews\/ros\/dt\/us_ynews_ros_dt_mid_center&quot;,&quot;region&quot;:&quot;viewer&quot;,&quot;size&quot;:[[300,250]],&quot;kvs&quot;:{&quot;loc&quot;:&quot;mid_center&quot;}}}}\" data-wf-trigger=\"onLoad\" data-wf-margin=\"100 0\" data-hide-ad-string=\"\"><\/div>\n<\/div>\n<p>The government is changing its tariff policy to align more closely with US measures. That means a broad range of US-made consumer products will no longer face a 25% tariff when imported into Canada, as of Sept. 1, as long as they\u2019re shipped in compliance with the provisions of the US-Mexico-Canada Agreement.<\/p>\n<p><iframe loading=\"lazy\" title=\"Canada scraps counter tariffs on US imports, \u2018willing to play ball\u2019 with Trump on trade | DW News\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/FoGoUopl-gU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>But Canada is keeping 25% import taxes on US steel and aluminum, as well as tariffs on US cars and trucks. President Donald Trump has imposed levies on all of those sectors.<\/p>\n<p>Carney indicated the move is meant to prepare the ground for the review of USMCA, which is expected to begin in the coming months.<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\">\n<div>\n<div class=\"caas-img-container caas-img-lightbox\" data-lightbox-src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/dOgGILu_vPmWTfJR2TcZJQ--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTE5MjA7aD0xMDgwO2NmPXdlYnA-\/https:\/\/media.zenfs.com\/en\/bloomberg_holding_pen_162\/18c1be3415f13a3f27728245eb1905d7\"><span class=\"caas-img-wrapper\"><img decoding=\"async\" class=\"caas-img caas-lazy has-preview caas-loaded\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/8OCjfOFLf5Jpi1KPVzcPHA--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTU0MDtjZj13ZWJw\/https:\/\/media.zenfs.com\/en\/bloomberg_holding_pen_162\/18c1be3415f13a3f27728245eb1905d7\" alt=\"WATCH: Canada will remove its retaliatory tariffs on numerous US products that comply with the existing North American trade deal.Source: Bloomberg\" data-caas-lazy-loading-init=\"1\" \/><\/span><\/div>\n<\/div>\n<\/div>\n<div class=\"caption-wrapper caption-aligned-with-image\">\n<div class=\"caption-wrapper caption-aligned-with-image\"><\/div>\n<\/div><figcaption class=\"caption-collapse\" data-id=\"m-0\">WATCH: Canada will remove its retaliatory tariffs on numerous US products that comply with the existing North American trade deal.Source: Bloomberg<\/figcaption><\/figure>\n<p>It\u2019s a major policy shift for Canada, which was one of the only countries to swiftly retaliate against US protectionism \u2014 something that irritated Trump and Commerce Secretary Howard Lutnick. It comes a day after Carney and Trump spoke by phone, their first publicly acknowledged conversation in weeks.<\/p>\n<p>Trump welcomed Carney\u2019s move and said the two leaders plan to speak again soon.<\/p>\n<p>\u201cWe are working on something, we want to be very good to Canada,\u201d Trump told reporters in the White House, adding that he likes Carney \u201ca lot.\u201d<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\">\n<div>\n<div class=\"caas-img-container caas-img-lightbox\" data-lightbox-src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/9vd8w0E0ZTw5CV2RLklYWg--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTI0MDA7aD0xMzUwO2NmPXdlYnA-\/https:\/\/media.zenfs.com\/en\/bloomberg_holding_pen_162\/e159cd606ba8ad9228fecce77f18052e\"><span class=\"caas-img-wrapper\"><img decoding=\"async\" class=\"caas-img caas-lazy has-preview caas-loaded\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/tUaKKlFjAYI0fxQwYesk7A--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTU0MDtjZj13ZWJw\/https:\/\/media.zenfs.com\/en\/bloomberg_holding_pen_162\/e159cd606ba8ad9228fecce77f18052e\" alt=\"WATCH: Dominic LeBlanc, president of the King\u2019s Privy Council for Canada and minister for Canada-US trade, explains why Canada is removing its retaliatory tariffs on a long list of US products that comply with the existing North American trade deal.Source: Bloomberg\" data-caas-lazy-loading-init=\"1\" \/><\/span><\/div>\n<\/div>\n<\/div>\n<div class=\"caption-wrapper caption-aligned-with-image\">\n<div class=\"caption-wrapper caption-aligned-with-image\"><\/div>\n<\/div><figcaption class=\"caption-collapse\" data-id=\"m-1\">WATCH: Dominic LeBlanc, president of the King\u2019s Privy Council for Canada and minister for Canada-US trade, explains why Canada is removing its retaliatory tariffs on a long list of US products that comply with the existing North American trade deal.Source: Bloomberg<\/figcaption><\/figure>\n<p>Lutnick, who is one of the administration\u2019s trade negotiators, told the Canadians that the counter-tariffs were a barrier to full talks and that it left them in a poor negotiating position, a person familiar with the discussions said, speaking on condition of anonymity. Lutnick pressed the Canadians to drop the tariffs to clear the way for negotiations. The US gave nothing in return, the person said.<\/p>\n<p>The Canadian dollar extended gains on the Bloomberg News report of the prime minister\u2019s decision and was trading at C$1.382 per US dollar as of 2:20 p.m. in Toronto.<\/p>\n<p>Consumer Tariffs<\/p>\n<p>Canada\u2019s first round of counter-tariffs in early March placed a 25% tax on about C$30 billion ($21.7 billion) of US goods that included orange juice, wine, clothing, motorcycles \u2014 the list was hundreds of pages long. Those will now be lifted, as long as the imports comply with USMCA.<\/p>\n<p>The second round came in response to Trump\u2019s decision to put tariffs on foreign steel and aluminum. Then-Prime Minister Justin Trudeau opted for tariffs against US metals products, including tools, as well other consumer goods such as sports equipment, hitting an additional C$30 billion in annual US shipments. Those were implemented right before Carney took over.<\/p>\n<p>\u201cCanada and the United States have re-established free trade for the vast majority of our goods,\u201d Carney said at a news conference in Ottawa. \u201cCanada will retain our tariffs on steel, aluminum and autos as we work intensively with the US to resolve the issues there.\u201d<\/p>\n<p>The move should reduce inflationary pressures, and \u201cfurther opens the door for the Bank of Canada to resume its rate cutting cycle,\u201d Royce Mendes, head of macro strategy at Desjardins, said by email.<\/p>\n<p>Carney campaigned and won a national election by promising an aggressive approach that would inflict \u201cmaximum pain\u201d on the US \u2014 and in the midst of that election he retaliated against Trump\u2019s automotive tariffs with similar levies on US-manufactured vehicles. But as head of the government, he has taken a more skeptical view of counter-tariffs than Trudeau did.<\/p>\n<p>In April, his finance minister carved out a series of exemptions, allowing businesses to bring in certain items from the US tariff-free, and announced that for automakers such as General Motors Co. and Stellantis NV would be able to apply for tariff relief if they keep their manufacturing and investment in Canada.<\/p>\n<p>When the White House doubled tariffs on steel and aluminum to 50%, Carney threatened to retaliate, but never did. Canada also didn\u2019t change its counter-tariffs when the White House increased its so-called fentanyl tariffs on Canada to 35% from 25% on Aug. 1.<\/p>\n<p>At that time, the White House also maintained a USMCA exemption that allows a majority of Canadian exports to the US to escape tariffs. Economists at Bank of Nova Scotia have estimated that the effective US tariff rate on Canadian goods is less than 7%.<\/p>\n<p>Carney said the average tariff rate on Canadian goods is a little more than 5.5%. \u201cIt\u2019s not what we used to have,\u201d he said. \u201cNobody has a deal with the United States that they used to have.\u201d<\/p>\n<p>Counter-tariffs haven\u2019t caused significant inflation problems in Canada. Statistics Canada said this week the consumer price index rose 1.7% in July from a year earlier, below the Bank of Canada\u2019s 2% inflation target.<\/p>\n<p>\u201cThe retaliatory tariffs haven\u2019t added much to Canadian inflation, or deterred the Trump administration from imposing tariffs on Canada, but we could benefit by dropping them if that helps win some concessions on US tariffs on Canada,\u201d Avery Shenfeld, chief economist with Canadian Imperial Bank of Commerce, said by email.<\/p>\n<p>The economic stakes of a trade deal with the US are higher for Canada than for most other countries. Last year, three-quarters of Canada\u2019s merchandise exports went to the US, led by oil and gas. Exports represent about a third of gross domestic product.<\/p>\n<p>At the same time, the northern nation is a large market for US exporters \u2014 about $440 billion in US goods and services last year, more than any other country. Excluding energy products, the US has a trade surplus with Canada.<\/p>\n<p>&#8211;With assistance from Eric Martin and Erik Hertzberg.<\/p>\n<p>(Updates with comments from Trump, beginning in the seventh paragraph.)<\/p>\n<p>\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212;\u00a0Canada will remove its retaliatory tariffs on a long list of US products that comply with the<\/p>\n","protected":false},"author":2,"featured_media":1546,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[61,7,45,48],"tags":[],"class_list":["post-1545","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-canada","category-news","category-tariff","category-us"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/1545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1545"}],"version-history":[{"count":1,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/1545\/revisions"}],"predecessor-version":[{"id":1547,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/1545\/revisions\/1547"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/media\/1546"}],"wp:attachment":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}