Prime Minister Mark Carney noted that Canada faces the lowest effective U.S. tariff rate under CUSMA.
Prime Minister Mark Carney has announced that Canada will lift retaliatory tariffs on US goods that are compliant with CUSMA.
Speaking to reporters, Carney noted that due to the rise in CUSMA-compliant trade between the two nations, Canada has the lowest effective tariff rate from the US (roughly 6%), compared to the over 16% average rate the US is imposing on other nations.
Tariffs on CUSMA-compliant goods were first imposed by the United States when it launched its large-scale trade war across the globe. Since imposing those tariffs, the US has shifted their position and reaffirmed CUSMA in most respects. The lifting of retaliatory tariffs now aligns the two countries’ approaches.
However, counter tariffs on steel, aluminum, and autos remain in place. Those tariffs were imposed by Canada following the imposition of ‘sectoral’ US tariffs on Canada and the rest of the world.
Carney appears to be reframing the issue of getting a ‘deal’ with the United States by noting that Canada already has a deal that is better (in terms of lower tariffs) than the deal many countries and global blocs are signing. Instead, the focus is shifting to addressing specific trade irritants while looking at the renegotiation of CUSMA.
You can watch the Prime Minister’s announcement below:
Spencer Fernando
Image – YouTube
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