Canada to Eliminate Tariffs on U.S. Goods Starting September 1

Ottawa, August 23, 2025 — In a significant development for North American trade, Canada has announced that it will eliminate 25% retaliatory tariffs on a wide range of U.S. goods beginning September 1, 2025.

The move, announced by Prime Minister Mark Carney, comes after high-level discussions with U.S. President Donald Trump and is seen as a step toward easing trade tensions between the two neighbors.

Affected Goods

The tariff rollback will apply to consumer and agricultural products, including orange juice, peanut butter, wine, spirits, beer, motorcycles, and household appliances. Officials estimate the measure will impact over $20 billion worth of American exports to Canada.

Tariffs Still in Place

Despite the broader rollback, Canada confirmed that tariffs on steel, aluminum, and automobiles will remain in force. These sectors, considered strategically vital, are expected to be central in the upcoming USMCA review negotiations.


Economic & Political Impact

Economists say the removal of tariffs could help reduce inflationary pressures and lower prices for Canadian consumers, while also providing relief to importers and retailers.
At the same time, retaining levies on industrial goods allows Canada to maintain negotiating leverage in trade talks with Washington.

“The decision reflects a balancing act — easing pressure on Canadian households while keeping bargaining chips for key industries,” noted a Toronto-based trade analyst.

Looking Ahead

This announcement marks a turning point in Canada-U.S. trade relations, which have been strained since the imposition of retaliatory tariffs several years ago. Observers believe the policy shift could pave the way for renewed cooperation under the USMCA framework and strengthen economic ties in the region.

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