In a move aimed at reducing trade friction, Canada is set to lift retaliatory tariffs on a majority of US goods beginning September 1st. The tariffs on steel, aluminum, and automobiles will not be affected. This decision was made following discussions between Canadian Prime Minister Mark Carney and US President Donald Trump. The USMCA framework is the basis for this action, specifically regarding exemptions for goods under the agreement. The USMCA replaced NAFTA on July 1, 2020, and its goal is to foster stronger economic relationships among the US, Mexico, and Canada, promoting fairer trade practices.
Prime Minister Carney expects that this decision will speed up the ongoing trade negotiations with Washington.