Canada to remove countertariffs on American goods amid ongoing trade war: Carney

Trump: ‘I like Carney a lot’

By Spencer Van Dyk

Updated: August 22, 2025 



‘We want to be very good to Canada’: Trump reacts to the removal of tariffs on U.S. goods

PM Carney announces removal of tariffs on U.S. goods under CUSMA
Poilievre says PM Carney's 'elbows have mysteriously gone missing' after U.S. tariff step back

Poilievre takes aim at PM Carney for rescinding tariffs against U.S.

OTTAWA — Canada is dropping its countertariffs on the American goods that are covered by the free-trade agreement between the two countries, amid the ongoing trade war with the United States, Prime Minister Mark Carney said Friday.

Carney made the announcement during a news conference Friday, following a virtual meeting of his cabinet, and the day after a discussion with U.S. President Donald Trump.

Canada’s countertariffs on U.S. steel, aluminum, and autos are not changing, Carney said, adding the government’s “focus is squarely on these strategic sectors” going forward.

When asked whether he received assurances from Trump that scrapping some countermeasures will kickstart negotiations on a new trade and security deal, Carney said: “yes.”

Carney said that following his conversation yesterday with Trump, Canada and the U.S. agreed to “intensify” discussions to address trade challenges and “to seize major immediate opportunities, both in trade, investment and security.”

Carney won’t rule out future increases to steel and aluminum tariffs

Canada and the U.S. have been in a protracted trade war since February, when Trump imposed sweeping tariffs on Canadian goods, claiming they were related to border security. In the months since, he’s stacked additional sectoral tariffs on steel and aluminum, copper and autos.

Products that are covered by the Canada-U.S.-Mexico free trade agreement — known as CUSMA — are exempt from the initial slate of border-related levies.

Speaking to reporters on Friday, Carney insisted the move to drop some countertariffs is meant to “match” U.S. levies, by implementing a carve-out for goods covered by CUSMA. But, while the American administration has imposed 50 per cent tariffs on steel and aluminum, Canada’s countertariffs on those industries will remain at 25 per cent.

When asked whether Canada will increase its tariffs on steel and aluminum to match those of the U.S., Carney said not at the moment. But, when pressed on whether it’s something he’d consider in the future, the prime minister said: “we’ll look at everything.”

“We look at our industry both in terms of how we support their retooling, their investment in the industries, liquidity for today, helping their workers, buying Canadian, diversifying markets, but of course, trade policy, including with the United States, is part of that,” Carney said. “But we’re engaged in discussions with the United States about exactly those sectors.”

When asked what Canada could gain from making concessions to the U.S. — for example by scrapping the controversial digital services tax, and now by eliminating some countertariffs — Carney again insisted that aside from certain sectors, the move is meant to “match” the Americans.

“That’s the first point. Second is that the president and I had a long conversation yesterday, and we see the opportunity to build on where our relationship already is,” Carney added. “There’s a host of areas for investment in both our economies, host of areas on the security side that we can build on, and we intend to advance those discussions as rapidly as possible.”

CUSMA, for its part, is up for review next year. Carney said the federal government is beginning preparations for a renegotiation of that deal.

The government has also implemented measures to support the industries most affected by the trade dispute, and has been working to diversify its export markets to help insulate the Canadian economy from an over-reliance on the United States.

Several provinces, meanwhile, have removed U.S. alcohol from liquor store shelves, and Canadians en masse have reduced travel south of the border. Trump and his team have criticized those actions, according to U.S. ambassador to Canada Pete Hoekstra, calling the country “nasty” to deal with.

Trump: ‘I like Carney a lot’

In a statement to CTV News on Friday, a White House official said the U.S. welcomes Canada’s decision to remove tariffs on CUSMA-compliant goods, calling it “long overdue.”

The official added they look forward to “continuing our discussions with Canada on the administration’s trade and national security concerns.”

Speaking to reporters in the Oval Office Friday, Trump categorized his discussion with Carney the day before as “a very good call,” and saying he thought it was “nice” that Canada is dropping its counterlevies.

“I like him a lot,” Trump said in reference to Carney, adding he thinks he’s “a good person,” while accusing Canada and Mexico of taking “a lot of (U.S.) business over the years.”

“It’s basically all coming back into the United States now,” he added. “We’re hot as a pistol. It’s coming back in because of tariffs and incentives we give.”
Poilievre criticizes Carney for capitulation

In an interview with CTV News on Friday, Canadian Steel Producers Association President and CEO Catherine Cobden said the federal government has “taken an ‘elbows down’ approach on steel.”

“The facts are, we are not matching the tariff level by any stretch of anyone’s imagination, on what the U.S. is doing to us on steel,” Cobden said. “We are far, far away from that.”

Conservative Leader Pierre Poilievre, meanwhile, criticized Carney for the number of concessions he made to Trump, accusing him of capitulating to the U.S. president and showing “weakness” on the world stage.

“His elbows have mysteriously gone missing,” Poilievre told reporters on Parliament Hill Friday, in reference to Carney’s campaign promise that he’d be the best person to deal with Trump, and his pledges to negotiate with Trump with elbows up.

“It was the promise on which he ran his entire election campaign, and now he’s abandoning it,” Poilievre also said. “So, either he admits that he was wrong all along, or that he knowingly spread falsehoods to get elected.”

When asked whether he wants to see Canada increase its tariffs on American steel and aluminum to the rate of the U.S. levies, Poilievre wouldn’t directly say.

“My preference would be to see the Americans lower their tariffs so that we can reinstate free trade,” he said. “But one tariff that I will be cutting for sure, that I will push the prime minister to cut for sure, … is the industrial carbon tax.”

Poilievre said he’s ready to work with Carney to tackle the cost-of-living crisis, and that all the parties need to “get to work” when the House comes back in the fall.

With files from CTV News’ Brennan MacDonald, Stephanie Ha, and Noah Wachter


Spencer Van Dyk

Writer & Producer, Ottawa News Bureau, CTV News

Sask. premier confirms trip to China to assist in canola tariff negotiations

By David Prisciak
Updated: August 21, 2025


Saskatchewan Premier Scott Moe says he will be travelling to China in the coming weeks to assist federal officials in negotiating an end to Chinese tariffs on canola and other Canadian crops.

“I myself will be in China in the next couple of weeks, with potentially another opportunity for engagement before the end of the calendar year,” Moe told reporters during a press conference Thursday afternoon in Saskatoon.

Moe and provincial ministers met with federal Agriculture Minister Heath MacDonald, industry groups, and Kody Blois, the parliamentary secretary for Prime Minister Mark Carney, to discuss the tariff situation.

Blois noted that the federal government is aware of the threat the Chinese tariffs pose for producers in Saskatchewan and right across Canada, adding that while negotiations with the Chinese will continue, Canada must also look to other markets.Read more: Sask. premier vows to travel to China in attempt to end canola tariffs

“What I would say is


the message is very clear, and the government is very cognizant of the fact that the importance of the Chinese market for Canadian canola exports,” Blois explained.

“The premier’s going to make his trip to China. But part of this conversation also revolves to the premier’s comments of what other markets are available.”

Moe reiterated the fact that on an issue as important as canola exports – it’s essential for provincial and federal leaders to work together.

“It’s of vital importance that we are addressing this in a collaborative fashion,” he said.

“It isn’t going to be Premier Moe and President Xi that stand up and say, ‘We’ve come to a trade deal here and everything is good moving forward,’ It is going to be the Prime Minister of Canada, Prime Minister Carney and President Xi that ultimately are going to speak on behalf of their countries.”

Carney is scheduled to visit the prairie provinces in the next several weeks to meet with stakeholders in the agriculture sector and provincial leaders on what can be done domestically to support producers.

“To those who are involved in the canola industry from a producer level, we know the anxiety of the uncertainty of the market access right now and what this means,” Blois added.

“We have tools at our disposal. We know your value, and we’re going to work hand in hand with the Government of Saskatchewan to see what we can do to mitigate the situation in the days ahead.”

The date for Moe’s trip will be confirmed in the next several days.

China imposed the tariff of nearly 76 per cent last week, causing the price of one of Canada’s most valuable crops to fall and wiping out millions of dollars in its value.

It comes one year after China launched an anti-dumping investigation into Canadian canola, a move in response to Canada’s 100 per cent tariff on Chinese electric vehicles.

Farmers and Ottawa have rejected the dumping claim, saying exporters have followed rules-based trade.


David Prisciak
Digital Journalist - CTV News Regina