Prime Minister Mark Carney, left, stands with U.S. President Donald Trump as he responds to questions from reporters while posing for the family photograph during the G7 Summit in Kananaskis, Alta., Monday, June 16, 2025. THE CANADIAN PRESS/Darryl Dyck

By The Canadian Press

re-established free trade

Carney announces that Canada is dropping many retaliatory tariffs on U.S. goods

Aug 22, 2025 | 10:54 AM

Prime Minister Mark Carney says Canada is dropping some retaliatory tariffs on American products to match U.S. tariff exemptions for goods covered under the Canada-United States-Mexico Agreement.

Carney says the decision will take effect on Sept. 1, 2025.

Carney says Canada and the U.S. have re-established free trade for the vast majority of goods.

The prime minister says Canada will retain tariffs on steel, aluminum and autos as it works with the U.S. to resolve issues.

Carney says the Canadian government will begin its preparations for the CUSMA review process due next year by launching consultations starting next month.

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Canada imposed 25 per cent tariffs on a long list of American goods in March, including oranges, alcohol, clothing and shoes, motorcycles and cosmetics.

This report by The Canadian Press was first published Aug. 22, 2025.

By Kyle Duggan in Ottawa