Canada’s Prime Minister Mark Carney announced Friday from Ottawa that retaliatory tariffs on American goods will be lifted under US-Mexico-Canada Agreement (USMCA). This decision welcomed by US President Donald Trump sparks hope for revitalized trade relations between Washington and Ottawa.
Despite decades of robust trade ties, tensions flared after Trump’s return to White House. Both nations traded negotiations and tariff threats but Carney’s move signals a positive shift. Speaking from the capital, he confirmed Canada will remove import duties on most US products, aligning with USMCA terms. This positions Canada for what Carney called the most profitable trade deal with the US, surpassing agreements with other nations.
However, tariffs on steel, aluminum and autos remain preserving leverage for ongoing talks. Carney’s Thursday call with Trump reinforced that lifting tariffs could fast-track negotiations, especially with the 2026 USMCA review looming. Over 80% of Canada-US trade will now fall under free trade boosting economic ties.
From the Oval Office, Trump praised Carney’s decision, calling it a step forward. He hinted at further discussions, claiming Canada and Mexico long profited from US business—opportunities he insists are returning to American soil.
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This breakthrough follows months of strained relations and tariff disputes. While some Canadian leaders question move as concession businesses hope for smoother cross-border trade. Focus now shifts to resolving disputes over steel and autos as both nations eye stronger partnership.
