Ottawa has taken a major step back from its recent trade retaliation, announcing it will eliminate the 25 percent tariff on approximately $21 billion worth of U.S. imports—including everyday items like orange juice, wine, electronics, peanut butter, motorcycles, and appliances. These changes take effect September 1.
However, Canada will maintain its tariffs on U.S. steel, aluminum, and automobiles. Prime Minister Mark Carney described the move as a reciprocal gesture aligning with the United States-Mexico-Canada Agreement (USMCA), where the U.S. already exempts Canadian goods meeting eligibility criteria. Carney stressed this adjustment should help reset stalled trade talks with Washington as the USMCA comes up for review.
President Trump responded positively to the announcement, calling it a “welcome and long overdue” shift and indicating willingness to continue discussions. The largely bipartisan reaction highlights a mutual interest in restoring bilateral trade equilibrium.