On Monday, Canadian Prime Minister Mark Carney dropped an audacious bombshell. Beyond compliance Canada will undertake to reduce all tariffs on U.S. goods to bring its trade policies into further alignment with those of the United States. This decision comes as the United States and China have a bilateral trade agreement under active negotiation. It comes on the heels of a Cabinet meeting that addressed many economic concerns, including the conflict in the Middle East.
Speaking at a press conference convened at the National Press Theatre in Ottawa, Carney announced that “we are prepared to match the U.S.” Specifically, he highlighted efforts to remove tariffs on products that are covered by the Canada-United States-Mexico Agreement (CUSMA). This welcome step was taken to address the strong and growing trade relationship between Canada and the U.S. Both countries are currently in the process of redefining the way they engage in international trade.
Carney greeting U.S. President Donald Trump on May 6, 2025, in the Oval Office of the White House. The announcement follows just days after that meeting. At this meeting, both leaders addressed the fraught nature of trade talks. Most recently, pressure from Trump’s tariffs on most of the world, including our biggest neighbor, Canada, has increased the urgency to negotiate.
Carney emphasized how important collaboration between both nations is. That’s why he thinks taking retaliatory tariffs off would be a win-win for both economies. This decision is a testament to the information provided by U.S. Trade Representative Jamieson Greer. It further reflects the statements of U.S. Treasury Secretary Scott Bessent at a press conference in Geneva on May 12, 2025. Yet they spoke of the “significant progress” achieved on U.S.-China notes. This indicates that tackling the trade issue is a central concern of the current administration.
The other issue that’s caught the public’s eye, and their ire, is how tariffs are hurting businesses. General Motors CEO Mary Barra recently cautioned that Trump’s tariffs could wallop the company with a $5 billion price tag. This declaration highlights how dire the situation is in the current trade talks.
