Canada to lift tariffs on U.S. goods covered under CUSMA

Prime Minister Mark Carney says Canada will remove all tariffs on U.S. goods covered under the Canada-United States-Mexico Agreement (CUSMA), restoring free trade on most goods between the two countries starting Sept. 1.

“In short, Canada and the U.S. have now re-established free trade for the vast majority of our goods,” Carney said in a statement. “Canada currently has the best trade deal with the United States. While it is different from what we had before, it is still better than that of any country.”

Canada will maintain tariffs on steel, aluminum and autos while negotiations continue with Washington on those sectors. Carney said consultations will begin next month ahead of next year’s CUSMA review to reassess Canadian priorities.

The prime minister added that Ottawa will soon announce a new industrial strategy to protect jobs, boost competitiveness, diversify exports and “buy Canadian goods.” He also pledged major nation-building projects, a defence industrial strategy and measures to double the pace of homebuilding.

“We can and must adjust to this new reality,” Carney said. “That means concentrating on trade, investment and security partnerships that preserve our sovereignty. Canada will move from reliance to resilience: building our strength at home, developing new markets abroad, creating new opportunities for Canadian workers and businesses as we build the strongest economy in the G7.”