Source: Trucking Dive
Date: 22nd August 2025

Major rollback under USMCA, but duties remain on steel, aluminum, and cars.

Canada announced that it will scale back its retaliatory tariffs on U.S. imports beginning September 1, easing trade tensions between the two nations.

Goods compliant with the United States-Mexico-Canada Agreement (USMCA) will no longer face additional levies, aligning Canada’s measures with those of the U.S. As a result, approximately 85% of cross-border trade will now move tariff-free.

Despite this rollback, Canada will maintain targeted tariffs on steel, aluminum, and automobiles. These sector-specific duties remain central to ongoing trade negotiations with the U.S., as Canada seeks to address its industries’ vulnerabilities while fostering broader trade stability.

The government positioned this adjustment as a step toward building a stronger foundation for future discussions under the USMCA framework.

The revised tariff stance follows recent high-level talks between the Canadian government and U.S. leadership. Canada previously imposed 25% tariffs on nearly $60 billion worth of American goods earlier this year in response to U.S. measures.

By partially lifting these duties, Canada aims to balance protecting key industries with advancing constructive trade relations.

Officials emphasised that while the current arrangement differs from past deals, Canada continues to enjoy one of the most favourable trade positions with the U.S. compared to other partners.