The President of the United States, Donald J. Trump, welcomes Canada's Prime Minister Mark Carry, at the White House in Washington, DC, on May 6, 2025. Line Credit: CNP / Admedia / Sipa Press / Profimedia
Canada will eliminate many of the import rates imposed on American products as a response measure and will intensify contacts with the United States to establish a new commercial and security relationship, Prime Minister Mark Carition announced on Friday, Reuters reports, according to News.ro.
Canadian rates for vehicles, steel and aluminum in the US will remain in effect for the moment, he said in a press conference in Ottawa.
Cariy mentioned that the United States have recently reported that they will not impose tariffs on Canadian products that fall into the categories covered by the free-change agreement between the US, Mexico and Canada-which he qualified as a positive evolution.
“In this context and in accordance with Canada's commitment to USMCA, today announces that the Canadian government will follow the example of the United States and will eliminate all Canadian rates applied to USMCA,” said Cariy.
“Canada and the US have now restored free-change for the vast majority of our goods,” he added, reiterating that, compared to his trading partners, Canadian exports were still subjected to a low level of American rates.
The news contributed to the growth of the Canadian dollar, which at 12:40 am registered an increase of 0.5%, reaching Canadian dollars for an American dollar, or 72.27 American cents.
Canada has been discussing discussions with the United States for a new economic and security relationship for months, but the two parties are not close to reaching an agreement.
Canada and China are the only countries that have responded against the United States with retrival rates, to the dissatisfaction of the American administration.
“We welcome this measure of Canada, which has been waiting for a long time. We are looking forward to continuing negotiations with Canada on the concerns of the administration in terms of national trade and security,” said an official of the White House.
Carry spoke on Thursday with Donald Trump. Asked if the US president told him that the raising of the tariffs will relaunch the negotiations, Cary replied “Yes”.
Cariy has won the April elections based on the promise that it will oppose Trump's tariffs, but has since gradually adopted a more moderate tone.
At the end of June, Cariy gave up a tax proposal on digital services, which was not at the liking of American companies, and in July he gave up discussions for imposing additional sanctions if the two parties would not reach an agreement until August 1.
Cariy, using an analogy in the ice hockey, said the time has come for a more moderate approach, instead of continuing an aggressive position.
The news could be a political challenge for Cary, whose liberal party has only a minority of places in the House of Commons and depends on the opposition parties to survive the trust votes.
The conservative leader, the largest opposition party, accused Cariy this week of having a too gentle approach to the United States.
Cariy's predecessor as prime minister, Justin Trudeau, imposed 25% on March 6 on March 6, US $ 30 billion (US $ 21 billion), in response to Trump's initial taxes. The $ 30 billion canadian dollars were part of a general reprisal plan targeting the US imported goods worth $ 155 billion, but the response to the remaining 125 billion Canadian dollars has been postponed.
