Canada to Match U.S. Tariff Exemptions Under USMCA Trade Pact

Canada will drop retaliatory tariffs to match US exemptions on goods covered under the United States-Mexico-Canada Agreement (USMCA), Prime Minister Mark Carney announced, Rob Gillies reported for the Associated Press (AP).

The move is designed to reset trade talks ahead of the USMCA’s scheduled review in 2026.

Carney said Canada will adopt the carve-outs the US has applied to Canadian goods under the 2020 free trade deal, which shields most products from punitive duties.

“Canada currently has the best trade deal with the US. And while it’s different from what we had before, it’s still better than that of any other country,” Carney said.

Carney and US President Donald Trump spoke by phone recently, and Carney met with his Cabinet before making the announcement. The move is designed to reset trade talks ahead of the USMCA’s scheduled review in 2026.

Carney called the pact a unique advantage for Canada at a time when the US is clearly charging for access to its market.