Canada Scraps Half of Tariffs on U.S. Goods, Keeps Steel and Auto Duties

Canada said Friday it will lift its 25% tariff on about half of the U.S. goods targeted since March, in a bid to reset trade ties with Washington. Prime Minister Mark Carney announced that duties on orange juice, peanut butter, wine, beer, appliances, and motorcycles will be removed starting September 1, while tariffs on U.S. steel, aluminum, and automobiles will remain. The decision followed Carney’s first call with President Trump since trade talks collapsed before an August 1 deadline. At a press conference, Carney said removing the tariffs means “the U.S. and Canada will now treat the bulk of their trade equally,” noting Canadian imports are exempt from U.S. duties under the U.S.–Mexico–Canada Agreement (USMCA). A White House official welcomed the move as “long overdue,” while Carney said Ottawa will now focus on supporting industries still facing hefty tariffs and prepare for USMCA’s formal review next year.