Government/Policy
Canada agrees to drop most retaliatory tariffs
Written by Laura Miller
August 26, 2025
Canada has agreed to drop some retaliatory tariffs on US products, effective Sept. 1.
Canadian Prime Minister Mark Carney stated at a news conference on Friday that Canada would eliminate tariffs on American-made goods to align with US tariff exemptions on products covered under the USMCA.
However, reciprocal tariffs on US steel, aluminum, and autos will remain in place.
The White House told BBC it welcomed the “long overdue” news and looks forward to continuing trade and national security talks.
Canadian steel producers weren’t as pleased, calling Carney’s announcement “a disappointment.”
“We appreciate the sentiment expressed by the Prime Minister that his focus is on finding a solution for the Section 232 impacted sectors, but we must see actions that meet the moment,” stated Catherine Cobden, president of the Canadian Steel Producers Association (CSPA).
“The fact is that a significant volume of steel is entering Canada from the United States without a tariff of any sort,” she continued, highlighting that 83% of all US steel imported into Canada could be manufactured in Canada. “But instead they get free access to the Canadian markets while our industry suffers.”
CSPA believes reciprocal tariffs provide necessary protection for Canadian industry during this trade war, and hopes the government can “get this right.”
Laura Miller
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