Canada will remove all tariffs on goods from the United States that are covered by the Canada-U.S.-Mexico Agreement (CUSMA) by Sept. 1, Prime Minister Mark Carney announced on Friday.

The prime minister said Canada will maintain its tariffs on steel, aluminum and autos as the Liberal government works with the U.S. to craft a new trading relationship between the two countries.

Carney said that despite the ongoing trade war, and U.S. tariffs on steel, aluminum, autos, copper, lumber and energy, 85 per cent of trade with the U.S. is still tariff-free — which is a better deal than other countries have.

“As we work to address outstanding trade issues with the U.S., it is important we do everything we can to preserve this unique advantage for Canadian workers and their families,” Carney said.

The Canadian government imposed retaliatory tariffs on U.S. goods three times since the trade war began, including counter-tariffs on $60 billion worth of U.S. consumer goods and additional tariffs on U.S. autos, steel and aluminum.

The 35 per cent tariff rate only applies to goods not covered by CUSMA.

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