Canada rolls back retaliatory tariffs
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Canada's Prime Minister Mark Carney said on Friday that his country will drop some of its billions of dollars in retaliatory tariffs on US goods, though it will keep levies on autos, steel and aluminium.
On July 27, Ursula von der Leyen, the president of the European Commission and President Trump agreed to a deal that included a 15% tariff on most goods from the EU.
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.
Catherine Cobden, president and CEO of the Canadian Steel Producers Association, said Thursday that Ottawa should impose a 50 per cent retaliatory tariff on all U.S. steel, including "immediately ending the ill-advised April reprieve" American steel used in manufacturing and processing.