President Trump mentioned a discussion with Canadian Prime Minister Mark Carney, during which Carney agreed to lift certain retaliatory tariffs imposed on the U.S., aiming to ease trade tensions between the two countries.
“He’s removing his tariffs, yes, the retaliatory ones, which I think is a positive step. We’ll have another call soon. It was a very productive conversation,” Trump shared with reporters in the Oval Office.
“I like him,” he added, arguing that Canada and Mexico “take a lot of our business” that is now returning to the U.S. because of his tariffs plan.
According to CNBC, Carney announced on Friday his decision to withdraw the 25 percent retaliatory tariffs on U.S. goods in alignment with the U.S.-Mexico-Canada Agreement (USMCA), which have been enforced since March. This new tariff rate will be implemented starting September 1.
Trump praised Carney for dropping some tariffs.
“I believe it’s difficult for another country to halt this process, and we are collaborating on a solution. We want to maintain a good relationship with Canada. I have a lot of respect for Carney; he is a good person. We had an excellent discussion yesterday, so I am hopeful,” Trump stated.
Canada will maintain 25 percent tariffs on U.S. steel, aluminum, and automobiles, as these are sectors where Trump has also imposed tariffs. Carney indicated that this adjustment is part of preparations for upcoming discussions on reviewing the USMCA trade agreement, according to Bloomberg.
Trump imposed a 35 percent tariff on Canada, attributing it to issues with the flow of fentanyl across the U.S. border. However, products covered by the USMCA, which Trump endorsed in 2020, are excluded from tariffs on goods from Canada and Mexico.
