Canada will soon announce the removal of retaliation tariffs on many US products, according to a Bloomberg report. Prime Minister Mark Carney is scheduled to announce the decision Friday after meetings between President Donald Trump and his cabinet as the White House Olive branch.
According to Bloomberg, the Canadian government will adjust its customs policy to more closely coordinate its U.S. measures. In April, Canada raised mutual tariffs in the United States following Trump’s drastic tariff announcement. The tariffs included several US goods, including technology, as well as US-made vehicles. The report notes that certain products will no longer be subject to 25% tariffs upon import into Canada if they are shipped in accordance with the provisions of the US-Canada Agreement. but, US carssteel and aluminum products are expected to remain part of ongoing customs duties.
Choose US tariffs to lift Canada
The expected announcement comes a day after Prime Minister Carney and Trump spoke on the phone. Canada was one of the first countries to announce retaliatory tariffs against the US, and tensions between the US and China have been shaking ever since. Trump’s demand for Canada to become the 51st US state earlier this year also didn’t help ease tensions.
Canada has built a digital services tax to spend around $3 billion on US technology giants, with payments retroactively back to 2022, covering a range of key revenue streams. The 3% collection targets revenue from Canadian users over $20 million per year, affecting many key online markets, social media platforms and digital advertising services. Additionally, several Canadian citizens have begun boycotting US goods, causing financial harm in the process like Amazon (AMZN).
Unlike the US, anti-enforcement has not caused serious inflation issues in Canada. Statistics Canada said this week that the consumer price index rose 1.7% from the previous year in July, falling below the Bank of Canada’s 2% inflation target. The United States and Canada are preparing to review the US-Mexico-Canada Agreement (USMCA), which is expected to begin in the coming months. Canada’s anti-load regime emphasizes the importance of that agreement.
