Canada to remove retaliatory tariffs on many U.S. goods

Canada to remove retaliatory tariffs on many U.S. goods

Canada is removing retaliatory tariffs on a wide range of U.

S.

goods, marking a significant de-escalation in trade tensions between the two North American neighbours.

The decision, announced [Insert Date and Official Source of Announcement, e.

g.

, on October 26th, 2023 by Deputy Prime Minister Chrystia Freeland], follows [Insert Reason for Removal, e.

g.

, a resolution of the dispute over softwood lumber, a mutual agreement to address concerns about aluminum tariffs, the expiry of the retaliatory measures, etc.

].

The tariffs, initially imposed in [Insert Year Tariffs Were Imposed] in response to [Insert Reason for Initial Tariffs, e.

g.

, U.

S.

tariffs on Canadian steel and aluminum, U.

S.

duties on Canadian softwood lumber, etc.

], impacted a broad swathe of American products, including [Insert Examples of Affected Goods, e.

g.

, agricultural products, manufactured goods, etc.

].

Their removal will likely lead to [Insert Predicted Positive Outcomes, e.

g.

, lower prices for Canadian consumers, increased trade between the two countries, improved bilateral relations, etc.

].

While the exact financial impact on both economies is still being assessed, analysts expect [Insert Expert Opinion or Prediction on Economic Impact, e.

g.

, a boost to U.

S.

exports to Canada, a positive effect on Canadian businesses importing U.

S.

goods, a strengthening of the overall North American supply chain, etc.

].

The removal of these tariffs underscores the importance of the Canada-U.

S.

relationship and the commitment of both governments to resolving trade disputes through dialogue and cooperation.

The move is seen as a positive sign for the future of bilateral trade and could pave the way for further collaboration on other economic and political issues.

However, [Insert Potential Challenges or Caveats, e.

g.

, some lingering concerns may remain, the resolution may be temporary, future disputes could still arise, etc.

].

Despite this, the elimination of these retaliatory tariffs represents a significant step towards a stronger and more stable economic relationship between Canada and the United States.

Canada will remove retaliatory tariffs on many U.S. products that are covered under the U.S.-Mexico-Canada Agreement, or USMCA, Prime Minister Mark Carney said at a press conference on Friday.

The move by Canada is expected to reduce tensions with the U.S., as the two nations a trade agreement. 

Speaking to reporters on Friday after a call with Carney the previous day, President Trump said it was "nice" of the prime minister to withdraw the Canadian tariffs.

"I like Carney a lot," Mr. Trump said. "I think he's a good, good person, and we had a very good talk yesterday, so I think it'll be good."

Carney said in a press conference that the U.S. tariff rate on Canadian goods was 5.6%, noting that "85% of our trade is tariff-free."

Reached for comment before the press conference, the White House said, "We welcome this move by Canada, which is long overdue," in a statement to TheNews.

"We look forward to continuing our discussions with Canada on the Administration's trade and national security concerns," the White House said. 

Canada on an extensive list of American-made goods in March. Without the duties in place, American products including alcohol, clothing, and shoes will not face levies when imported into Canada.

In other trade developments this week, the Trump administration and European Union on Thursday released details of a framework agreement struck earlier this summer. The pact calls for the U.S. to on imports of European cars, pharmaceuticals and other products.

Under the arrangement, which is an agreement to facilitate trade negotiations between countries rather than a formal deal, the 27-member EU will eliminate tariffs on all American industrial exports and offer preferred terms for some seafood and farm products, while the U.S. will reduce tariffs accordingly.