The Canadian government, led by Prime Minister Mark Carney, announced the removal of tariffs on U.S. goods under CUSMA starting September 1, 2025, aligning with the U.S. stance and re-establishing free trade for most goods between the two countries.
However, tariffs on steel, aluminum, and autos will remain as negotiations continue.
This strategic move aims to restart stalled trade talks and prepare for the upcoming CUSMA review in 2026.
Canadian Trade Policy Shift
The decision to remove tariffs reflects a significant shift in Canada’s trade policy. By aligning with the U.S., Canada seeks to enhance economic stability and competitiveness while maintaining protections for strategic sectors like steel and aluminum.
Prime Minister Mark Carney emphasized that this approach is part of a broader strategy to build resilience and sovereignty in trade partnerships. The government plans to launch consultations for the upcoming CUSMA review.
Federal-Provincial Coordination
This policy change will require coordination between federal and provincial governments. Provinces with strong manufacturing sectors such as Ontario and Quebec may experience direct impacts from these tariff adjustments.
Provincial Considerations
- Provinces like Ontario could see increased economic activity due to reduced costs for businesses.
- Quebec’s manufacturing sector may benefit from improved supply chain stability.
- Alberta might explore new opportunities in diversified exports beyond traditional resources.
Industrial Strategy Development
The Canadian government is also focusing on developing a comprehensive industrial strategy aimed at protecting jobs and boosting competitiveness. This initiative is expected to stimulate innovation across various sectors while diversifying export markets.
Canadian Resources
To Sum Up
This announcement marks a pivotal moment in Canada’s trade relations with the United States. By removing tariffs on most goods under CUSMA, Canada aims to strengthen its economic ties while safeguarding important industries through ongoing negotiations.
The focus remains on fostering resilience and sovereignty in future trade agreements.
Sources: Prime Minister’s Office, Government of Canada.
Prepared by Ivan Alexander Golden, Founder of THX News™, an independent news organization delivering timely insights from global official sources. Combines AI-analyzed research with human-edited accuracy and context.
