Canada rolls back retaliatory tariffs
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A Canadian government official says that Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada trade pact
Under that scenario, headline inflation would stay below 2% until late 2026. The Bank of Canada sets interest rates to achieve and maintain 2% inflation. “The removal of retaliatory tariffs on many products should help quell any lingering concerns at the Bank of Canada about tariff-induced inflation,” Mendes said.
The move represents an about-face for Canada, which had been one of the few countries to punch back against President Trump’s protectionist agenda.
Canada will drop its retaliatory tariffs on most U.S. goods on Sept. 1, Prime Minister Mark Carney announced after a cabinet meeting on Friday.
We have the best deal of anyone in the world right now,” Carney told reporters in Ottawa, noting that the average U.S. tariff rate on Canadian goods is 5.6 percent, the lowest among America’s trading partners.