Canada to lift countertariffs on U.S. goods covered by free-trade deal

August 22, 2025

RED FM News Desk

Prime Minister Mark Carney says Canada is removing countertariffs on American goods covered by the Canada-U.S.-Mexico free trade agreement (CUSMA), even as a broader trade dispute with Washington continues.

Carney announced the decision Friday following a virtual cabinet meeting, one day after speaking with U.S. President Donald Trump.

In a statement to CTV News, a White House official welcomed the move, calling it “long overdue,” and said the U.S. looks forward to continuing talks with Canada on trade and national security concerns.

The trade standoff began in February, when Trump imposed sweeping tariffs on Canadian imports, citing border security. Since then, the U.S. has layered on additional duties targeting steel, aluminum, copper, and auto products.

While CUSMA-protected goods were exempt from the original tariffs, Ottawa responded with a series of countermeasures, hitting items such as Florida orange juice, Kentucky bourbon, and U.S.-made steel and aluminum.

The Canadian government has also rolled out supports for industries hit hardest by the dispute and pushed efforts to diversify export markets to reduce dependence on U.S. trade.