Canada agrees to give up retaliatory tariffs on many goods imported from the U.S. as trade talks continue between Canadian Prime Minister Mark Carney and President Donald Trump, the Washington Examiner reported. Carney announced the change on Friday, stating that the rules will now align with the United States-Mexico-Canada Agreement trade exemptions.
The news comes after a "productive" phone call between the leaders of both nations on Thursday as relations between Carney and Trump continue to improve. The pair has hammered out a deal that has put the increased tariffs on hold.
"Canada currently has the best trade deal with the United States. And while it’s different from what we had before, it’s still better than that of any other country," Carney said during the news conference. A clip of Carney's remarks was shared to X, formerly Twitter, on Friday.
Canadian Prime Minister Mark Carney announces that Canada will be DROPPING their retaliatory tariffs against the US and removing tariffs on US goods covered by existing trade deals.pic.twitter.com/Y9ONDpOk1g
— Libs of TikTok (@libsoftiktok) August 22, 2025
The change to the tariff policy will go into effect on Sept. 1, though Canada will continue to impose its tariffs on aluminum, autos, and steel. This is a step toward reconciliation as the U.S. and Canada work together to make trade between the nations "fair" and defuse a trade war.
Trump announced plans for a 50% tariff on Canadian aluminum and steel and a 35% tariff on all other goods from the U.S.'s neighbor to the north earlier this year. Canada returned the favor with a 25% tariff on imports of American goods like alcohol, clothing and shoes, cosmetics, oranges, and motorcycles from the U.S.
Eager to strike a deal, Ottawa agreed to a new trade deal and began negotiations with the Trump administration. Some of those concessions included rolling back taxes on digital services and putting a hold on the retaliatory tax that should have already gone into effect while talks continued, Fox Business News reported.
Forging a new agreement was a priority for Carney and Trump as the two nations have historically enjoyed a robust trade relationship. Canada imported nearly half of its goods from the U.S. and exported more than 75% of its products to the U.S., making them each other's primary trade partner.
Prior to this new agreement, Democrats were making doomsday predictions about Trump's tariffs and the effect potential trade wars would have on the U.S. economy. Now, one by one, Trump is succeeding with these negotiations that were previously deemed impossible while winning in other areas.
While the left loses its mind, Trump continues to notch one win after the next while trolling his opposition. As part of his victory lap on Friday, Trump reportedly wore a cap that said "Trump was right about everything" during his remarks about the tariff agreement.
"We want to be very good to Canada. I like Carney a lot. I think he’s a good person," Trump said of the Canadian prime minister. The president promised that they would continue to work together to find common ground on other issues, including stopping the flow of illicit drugs pouring over the northern border.
Trump has justified the high tariffs on Canada over its role in the fentanyl crisis in the U.S. that Trump's adversaries have attempted to downplay. As the White House noted just before the punitive tariffs went into effect on Aug. 1, "Mexican cartels are increasingly operating fentanyl- and nitazene-synthesis labs in Canada" and that "super labs" are popping up as they're well-hidden by the Canadian wilderness.
The White House noted that these labs "can produce 44 to 66 pounds of fentanyl weekly." Meanwhile, Canada's decision to drop the tariffs comes during a string of other Trump victories. According to The Hill, Trump boasted several wins this week, including his fruitful meetings with the leaders of Russia and Ukraine, a crime crackdown in Washington, D.C., and the news that his $500 million civil judgment in New York was thrown out.
Trump knows what he's doing despite what the left and never-Trump Republicans have to say about him and his agenda. The nation is moving in the right direction on several issues, and the improvement in trade relations with Canada is just another win.
