Canada will announce Friday that it is removing many retaliatory tariffs on U.S. goods, a source familiar with the matter said.
Canadian tariffs on U.S. autos, steel and aluminum will remain for now, said the source, who requested anonymity given the sensitivity of the situation.
Bloomberg News was the first to report the move earlier today. Sources have confirmed the broad details to CBC News.
Prime Minister Mark Carney is scheduled to hold a news conference at noon ET on Parliament Hill.
Carney first hinted earlier this month that he may drop some of the counter-tariffs on some goods if it would help Canadian industries weather the trade war with the U.S.
U.S. President Donald Trump signed an executive order on July 31, raising tariffs on some Canadian goods to 35 per cent effective at 12:01 a.m. the next day. Canada might have been able to avoid the hike had it managed to strike a new trade deal with the U.S. by the Aug. 1 deadline, but that didn’t happen.
The Trump administration said Canada’s rate was being hiked in response to fentanyl trafficking and Canada’s decision earlier this year to hit back with counter-tariffs.
The Canadian government has 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.
The 35 per cent tariff rate only applies to goods not covered by the Canada-U.S.-Mexico Agreement (CUSMA), which governs trade between the three countries.
