Canada Drops 25% Tariffs On ~$21B In U.S. Goods; Metals Levies Stay

• Canada will remove 25% tariffs on a large slate of U.S. consumer goods (about $21B in exports) effective Sept 1.
• Steel, aluminum, and auto tariffs remain in place for now, per PM Mark Carney.
• Coverage lists affected items like orange juice, peanut butter, wine, spirits, beer, appliances, motorcycles.
• Move follows a Carney–Trump call and aims to reset trade talks ahead of the USMCA/CUSMA review.

Canada is dialing back its trade retaliation against the U.S., announcing the removal of 25% tariffs on roughly $21 billion worth of American consumer goods starting September 1. The rollback covers everyday items—orange juice, wine and spirits, peanut butter, appliances, motorcycles, and more—while keeping duties on U.S. steel, aluminum, and automobiles. Ottawa framed the shift as part of a broader reset after a call between Prime Minister Mark Carney and President Donald Trump.‍

Context matters: Canada’s 25% counter-tariffs were imposed earlier this year in response to U.S. measures. Carney said the new stance “matches” recent U.S. treatment of goods compliant with USMCA, restoring freer trade across “the vast majority” of products. Markets took notice—the Canadian dollar firmed after the announcement—as both sides prepare for the formal USMCA review window in 2026.

Economists say easing tariffs on consumer staples should lighten price pressures at the margin and may give policymakers slightly more flexibility, even as strategically sensitive sectors remain protected. For businesses, the near-term play is straightforward: adjust sourcing and pricing on covered categories by September 1, while watching whether talks yield relief on metals and autos in a second phase.‍