Canada has decided to drop many of its retaliatory tariffs on a broad list of US products that comply with the existing North American trade deal (USMCA), according to a Bloomberg report.
This move, expected to be announced by Prime Minister Mark Carney following a cabinet meeting, is aimed at lowering tensions with the White House and aligning more closely with US tariff measures.
The change means that many US-made consumer goods will no longer face a 25% tariff when entering Canada, provided they comply with the USMCA terms.
It affects roughly $21 billion worth of U.S. exports to Canada, including products such as oranges, peanuts, wine, spirits, beer, appliances, and motorcycles
The report stated that the government will likely maintain 25% import taxes on US steel and aluminium products and automobiles.
The move comes ahead of the review of USMCA, expected to begin the current months.
Canada had initially imposed retaliatory tariffs in response to U.S. protectionist tariffs, which frustrated the Trump administration and raised concerns about the future of USMCA.