Carney said Canada now has the „best trade deal“ with the United States of any country.
Canadian Prime Minister Mark Carney has received both criticism and praise on social media after announcing on Monday that he is dropping retaliatory tariffs introduced on U.S. goods that are covered under the Canada-United States-Mexico trade agreement (CUSMA).
The move came after what Carney’s office described as a „productive and wide-ranging conversation“ with President Donald Trump on Thursday.Why It Matters
Relations between Canada and the United States have deteriorated sharply since President Biden left office in January, with disputes over trade and Trump’s repeated call for Canada to join his nation as its 51st state.
Following his second presidential inauguration, Trump introduced a 25 percent tariff on Canadian goods, though these were repeatedly suspended. He also imposed tariffs on the import of strategic products, such as steel and aluminum. At the beginning of August he imposed tariffs of 25-35 percent on Canadian products, claiming Ottawa had „failed to cooperate“ on curbing fentanyl smuggling, though this doesn’t apply to goods covered by the CUSMA.
Trump’s policies sparked an angry reaction in Canada including boycotts of American goods and the booing of the U.S. national anthem at sporting events.What To Know
On Friday Carney announced the removal of all tariffs on U.S. goods covered by CUSMA, following a call with Trump the previous day, to take effect on September 1.
