August 22, 2025 - Trump administration news

A commercial truck and private vehicles enter the United States from Canada at the Pacific Highway Port of Entry in Blaine, Washington, on February 1. David Ryder/Getty Images/File

Canadian Prime Minister Mark Carney announced he's lifting retaliatory tariffs that were placed on an extensive list of American goods earlier this year. The move is set to take effect September 1.

The tariffs he's dropping include those on goods that comply with the terms of the United States-Mexico-Canada Agreement, Carney said. Carney, however, is not removing the 25% tariff placed on American steel and aluminum, as well as tariffs on American cars.

Carney said Trump specifically told him that removing these tariffs would kick-start trade negotiations. Carney sought to establish throughout a news conference that he's not capitulating to Trump by removing tariffs but rather was “matching” the US, which hasn't charged duties on Canadian goods that comply with USMCA.

More context: Canada is America's top export market and has been one of the only countries so far to impose retaliatory tariffs on American goods. The move to lift tariffs could boost the American economy if businesses import more from the United States as a result.

It comes after Trump and Canadian Prime Minister Mark Carney spoke yesterday.

Carney said he and Trump agreed to “intensify our discussions to address current trade challenges in those strategic sectors and to seize major immediate opportunities for us both in trade, investment and security.”

Today's move was viewed as a goodwill gesture by the White House.

“We welcome this move by Canada, which is long overdue,” a White House official told CNN.

The official added: “We look forward to continuing our discussions with Canada on the Administration's trade and national security concerns.”

CNN's Alejandra Jaramillo contributed reporting.

This post has been updated with the latest from Carney's announcement.