Prime Minister Mark Carney says most Canadian goods are exempt from US duties, but some departmental obligations remain.
Canadian Prime Minister Mark Carney said his country will remove retaliatory tariffs in conjunction with the tariff exemptions offered by the US as two ways of ease from a costly trade war.
Speaking to reporters on Friday, Carney said the US made clear that it would not impose tariffs on Canadian goods that are in compliance with the US-Canada Free Trade Agreement. Tariffs for some sectors such as steel, aluminum and cars remain intact.
“In this context, in line with Canada’s commitment to the USMCA, I am today announcing that the Government of Canada is consistent with the US by removing all Canadian tariffs on US products that are specifically covered by the USMCA.”
“Canada and the US have reestablished free trade for most of our products,” he added.
The Canadian leader, who took office in April amid widespread outrage over US President Donald Trump’s impose severe tariffs in Canada, admitted that trade between the two countries is unlikely to return to previous levels of integration, but has earned the best possible deal under the circumstances.
The Trump administration praised the decision on Friday.
“We welcome this move to Canada, which has been behind for a long time. We look forward to continuing discussions with Canada about the administration’s trade and national security concerns,” a White House official said.
Kearney faces a series of questions from reporters and asks if it has effectively folded in the face of US economic pressure.
The term is a hockey reference that suggests a positively protective attitude, embodying Carney’s promise to take a tough stance against the Trump administration.
Canadian leaders have said that the Trump administration has overturned decades of economic integration with countries around the world, and that it is not the only country that works to reorient itself.
“Canada currently has the best trade deal with the United States,” Carney said of the agreement, saying several times Canada has “consistent” movements from the United States. “And that’s not what we had before, but it’s still better than any other country.”
