Canada and the United States are restoring free trade for the vast majority of goods covered under the Canada-U.S.-Mexico Agreement (CUSMA), Prime Minister Mark Carney announced on August 22, 2025. Beginning September 1, Canada will remove tariffs on U.S. goods included under the agreement, while retaining targeted tariffs on steel, aluminum, and autos as negotiations continue.
The Prime Minister emphasized that recent U.S. trade actions, including higher sectoral tariffs and global trade shifts, have created new challenges for Canadian businesses. Canada’s response aims to preserve competitiveness, protect workers, and reinforce the country’s position in the global economy.
Preparations for the upcoming CUSMA review will start next month with consultations to identify Canadian priorities in the changing trade landscape. Officials highlighted that the United States remains Canada’s largest trading partner and that both nations are committed to strengthening investment, security, and supply chain partnerships.
In addition to trade measures, Canada will soon announce a new industrial strategy designed to protect jobs, increase competitiveness, and diversify exports. Key initiatives include investments in defense, housing, and strategic sector transformation to support higher-paying employment opportunities.
“Canada will move from reliance to resilience,” Prime Minister Mark Carney said, emphasizing the government’s commitment to supporting Canadian workers and businesses while building the strongest G7 economy. The government says these steps will help Canadian companies adapt to new global trade realities and seize opportunities for growth.
(Written by: Joseph Goden)
