Canada to lift tariffs on US goods under CUSMA trade deal

By Ahmet Salih Alacaci

WASHINGTON (AA) - Canada announced Friday that it would eliminate all countertariffs on US products covered by the Canada-US-Mexico Agreement (CUSMA) from next month.

"The Canadian government will now match the United States by removing all of Canada's tariffs on US goods specifically covered under CUSMA," Prime Minister Mark Carney told reporters after a Cabinet meeting.

Carney said the decision will go into force as of Sept. 1 and will exclude tariffs on steel, aluminum, and automobiles.

The change means a range of US-made consumer goods will no longer face the 25% tariffs if they comply with CUSMA, the world's second-largest free trade agreement in terms of trade volume also known as the US-Mexico-Canada Agreement (USMCA).

On July 31, Trump signed an executive order raising the tariff rate on Canada from 25% to 35%.

The new tariff rate on Canada took effect on Aug. 1, the White House said, accusing Canada of failing to cooperate with efforts to stop the flow of fentanyl and other illicit drugs, while also retaliating against actions taken by the US.