<p>Canadian Prime Minister Mark Carney <a href="https://x.com/i/broadcasts/1BRKjgpmOdNGw">announced</a> on Friday that the country was suspending many of its retaliatory tariffs on the United States after the Trump administration &#8220;reaffirmed&#8221; its commitment to the U.S.-Mexico-Canada trade agreement (USMCA).</p>
<p>Canada is removing tariffs on most products from the United States, but will keep in place a 25% levy on U.S. steel, aluminum, and vehicles, since those products are not directly covered under the USMCA. In March, Canada placed a 25% tariff on many U.S. products after the Trump administration imposed a 25% duty on Canadian steel and aluminum.</p>
<p>Bloomberg was first to <a href="https://www.bloomberg.com/news/articles/2025-08-22/canada-to-drop-many-retaliatory-tariffs-in-olive-branch-to-trump">report</a> on Carney&#8217;s announcement, saying that the move appears to be the Canadian government extending an &#8220;olive branch&#8221; to President Donald Trump.</p>
<p>&#8220;As in previous trade disputes, Canada has implemented a series of retaliatory tariffs. Their objectives have been to protect Canadian workers and businesses and to incentivize a negotiated settlement with the United States. A few other countries followed suit,&#8221; Carney said. &#8220;In a positive and very important development earlier this month, just a few weeks ago, the United States reaffirmed a core commitment to our free trade agreement by reinforcing that those Canadian exports to the United States that are compliant with that agreement &#8230; will not be subject to &#8230; tariffs.&#8221;</p>
<p>&#8220;As a result of that decision by the United States, the actual U.S. tariff rate on Canadian goods is 5.6%,&#8221; Carney added. &#8220;Compare that to the 16% global average. That remains the lowest amongst all of the United States&#8217; trading partners, and more than 85% of Canada-U.S. trade is now tariff-free.&#8221;</p>
<p><strong><a href="https://get.dailywire.com/subscribe/plus/?utm_campaign=summer&amp;utm_content=editorialsummersale&amp;utm_medium=website&amp;utm_source=editorial" target="_blank" rel="noopener">End of Summer Sale – Get 40% off New DailyWire+ Annual Memberships</a></strong></p>
<p>While Trump signed an order in late July imposing a 35% tariff on Canadian goods, the White House <a href="https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-amends-duties-to-address-the-flow-of-illicit-drugs-across-our-northern-border/#:~:text=ADDRESSING%20A%20NATIONAL%20EMERGENCY:%20Today,effect%20on%20August%201%2C%202025.">clarified</a> that most products are exempt under the USMCA, putting the actual average tariff rate on Canada at 5.6%. The prime minister said that Canada &#8220;has the best trade deal with the United States&#8221; as the numbers stand right now.</p>
<p>A White House official told <a href="https://www.cnbc.com/2025/08/22/canada-retaliatory-tariffs-trump-autos-steel.html">CNBC</a> that Canada&#8217;s move was &#8220;long overdue,&#8221; adding, “We look forward to continuing our discussions with Canada on the Administration’s trade and national security concerns.&#8221; A White House official, speaking on condition of anonymity, reportedly told Bloomberg that Commerce Secretary Howard Lutnick recently warned Canada about the retaliatory tariffs and encouraged them to drop the tariffs to set up a clear path to negotiations.</p>
<p>Canada backed down on its retaliatory tariffs after Carney spoke with Trump over the phone, a conversation that Carney called “productive and wide-ranging.” The USMCA, a deal that Trump negotiated during his first term in the White House, is set to be reviewed later this year, according to CNBC. Carney added during his press conference on Friday that Canada will continue to discuss &#8220;a new form of trade and security partnership with the United States.&#8221;</p>

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Trump Scores Trade Win As Canada Removes Several Retaliatory Tariffs On U.S.