Canadian Prime Minister Mark Carney on Friday announced that Canadian authorities are waiving a number of duties imposed in response to U.S. duties on some U.S. imports, The Globe and Mail reported.
“Consistent with our commitments under the United States-Mexico-Canada Agreement (USMCA), I am announcing today that the Canadian government will take measures similar to those previously taken by the U.S. and will waive duties on all U.S. goods covered by the treaty,” the prime minister said.
However, Carney said, Canada will retain duties on imports of steel, aluminium and automobiles from the United States, and Ottawa will work intensively with Washington on this topic. Carney said that after his conversation this week with U.S. President Donald Trump, the two sides will be more active in discussing “challenges in strategic sectors” as well as increasing cooperation in trade, investment and security.
Carney also believes Canada is making progress in trade negotiations with the US. “Right now, Canada has the best trade agreement with the United States, and while it’s different from what it used to be, it’s still better than any other country,” the prime minister said.
On 1 August, Trump signed an executive order raising tariffs on Canada from 25% to 35%. The statement emphasised that goods subject to preferential tariff treatment under the USMCA remain exempt from the new tariffs.
In turn, The Globe and Mail recalls, Ottawa is seeking an agreement that would reduce or eliminate duties on a number of Canadian goods. In July, Carney acknowledged that Canada probably won’t be able to convince Trump to remove all the duties.
However, Canada has implemented three rounds of retaliatory measures against the US. In the first, it imposed duties of 25 per cent on $30 billion worth of US products, including motorbikes and orange juice. The second round included 25 per cent duties on another $30 billion worth of products-metal products and consumer goods. The third round included duties of 25 per cent on automobiles, except for companies that have located production in Canada.
However, the publication notes, Canada subsequently softened the duties by approving some exemptions to the duties, including on U.S.-made raw materials used in Canadian industry.