Prime Minister Mark Carney announced plans to remove all Canadian tariffs on U.S. goods covered under the Canada–United States–Mexico Agreement beginning September 1, 2025. The move comes as Canada prepares for next year’s scheduled review of the trade pact and aims to maintain its preferential access to the US market.. "I am announcing today that the Canadian government will now match the United States by removing all of Canada’s tariffs on US goods specifically covered under CUSMA," Carney said. "Canada and the US have now re-established free trade for the vast majority of our goods."According to Carney, the change will restore tariff-free trade for the vast majority of goods between the two countries. Tariffs will remain in place on steel, aluminum and autos as discussions continue on those sectors.The United States currently has a 50% tariff on Canadian steel, aluminum and autos, while Canada only has a 25% tariff on U.S.-made goods. The US recently reaffirmed that Canadian exports compliant with CUSMA will not be subject to tariffs imposed under the U.S. International Emergency Economic Powers Act. As a result, Canada faces an average tariff rate of 5.6%, which is the lowest among US trading partners, with more than 85% of trade already tariff-free aluminum and autos while Canada only has a 25% tariff on US made goods..Carney stated that Canada will begin consultations next month to identify domestic priorities ahead of the CUSMA review and confirmed ongoing talks with the U.S. aimed at addressing trade issues in key sectors and expanding opportunities for investment and security partnerships..In a press conference primarily aimed at discussing the upcoming FIFA World Cup, US President Donald Trump said: "He's removing his retaliatory tariffs, which I thought was nice, and we're gonna have another call soon... we are working on something we want to be very good to Canada. I like Carney a lot. I think he's a good, good person. And we had a very good talk yesterday."Carney also announced planned initiatives, including new infrastructure and defence projects, efforts to accelerate homebuilding, and the development of additional trade agreements. The goal of these measures is to strengthen Canada’s economy while adapting to shifting global trade dynamics..While Canada and the U.S. have maintained deep economic ties for decades, Carney noted that the global trade environment is changing. The government said it intends to focus on trade, investment and security arrangements that protect Canadian sovereignty and ensure mutual benefits.Trump confirmed this in his press conference, stating that the U.S. is coming off "hot as a pistol" and that other countries could not stop the new trade tactics instituted by the United States.