Canada rolls back retaliatory tariffs
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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.
Canada drops select retaliatory tariffs on U.S. goods, aiming to align with CUSMA exemptions and improve conditions ahead of upcoming continental trade talks.
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
The tariff rate is currently 25% on U.S. goods imported to Canada. Once the rollback is implemented, U.S. goods imported into Canada that are covered by the U.S.-Mexico-Canada trade agreement will be exempt from tariffs.
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.