Canada will cancel some of the previously imposed retaliatory tariffs on American goods from September 1, Prime Minister Mark Carney announced, quoted by CNBC. The decision is defined as a gesture of goodwill and a step towards the resumption of trade negotiations with the United States, BTA writes.
In March, Ottawa imposed 25 percent tariffs on a wide range of American products in response to Washington's introduction of the same amount of levies on steel and aluminum. Canada, however, will maintain 25 percent tariffs on American cars, steel and aluminum, Carney said during his press conference.
"While we are actively working with the United States, our focus remains on strategic sectors," the Canadian prime minister said.
The decision was preceded by a phone call between Carney and President Donald Trump - the first since failed negotiations before the August 1 deadline for new tariffs. The Canadian prime minister's office described the conversation as “productive and comprehensive“, with the two leaders agreeing to meet again soon.
The White House welcomed the announcement. "This move by Canada is long overdue. "We look forward to continuing discussions on trade and national issues," a U.S. government official said.
The decision marks a shift in Ottawa's approach after Canada was among the few countries to respond quickly to U.S. protectionism, something that had irritated Trump and Commerce Minister Howard Lutnick.
The first round of retaliatory tariffs, introduced in March, imposed a 25 percent rate on about C$30 billion ($21.7 billion) in U.S. goods, including orange juice, wine, clothing and motorcycles.
The second wave was a response to tariffs on steel and aluminum imports imposed by Trump. Then-Prime Minister Justin Trudeau imposed tariffs on U.S. metal products and other consumer goods, affecting about C$30 billion worth of imports annually. They were introduced shortly before Carney took office.
Carney himself won the election on a promise of a tough approach that would inflict "maximum pain" on Washington, and during his campaign he responded to Trump's auto tariffs with similar measures on American cars. As prime minister, however, he has taken a more moderate stance on retaliatory tariffs than Trudeau.
Canada's decision is expected to be discussed in the upcoming review of the United States-Mexico-Canada Agreement (USMCA), negotiated during Trump's first term, which is expected to begin in the coming months.