Canada will remove many of the retaliatory tariffs on goods imported from the United States and increase contacts with the United States to reach a new trade deal, Canadian Prime Minister Mark Carney said on Friday.
Canadian tariffs on U.S. cars, steel and aluminum will not be lifted for now, he told reporters at a press conference in Ottawa.
Carney pointed out that the United States had recently made it clear that it would not impose tariffs on Canadian goods that were in line with the U.S.-Mexico-Canada Trilateral Trade Agreement (USMCA).
"In this context, and in line with Canada's commitment to the USMCA, I am announcing today that the Government of Canada will now align with the United States by removing all Canadian tariffs on U.S. goods that are specifically covered by the USMCA," he said.
Canada has been holding talks with the US for several months to establish new economic and security relations, but both sides are not close to an agreement.
Canada and China are the only nations that responded to the United States with retaliatory tariffs, angering the US administration.
"We welcome this step by Canada, which is long overdue. We look forward to continuing discussions with Canada about the administration's concerns regarding trade and national security," a White House official said.
Carney spoke with US President Donald Trump on Thursday. Asked if the US president had told him that the tariff lift would start talks, Carney replied: "Yes."
Carney won the April election on a promise to confront Trump's tariffs, but has since slowly softened his tone.
In late June, Carney abandoned a proposed tax on digital services, which U.S. companies strongly opposed, and in July stopped talking about further sanctions if both sides did not reach an agreement by August 1.
The news could be a political challenge for Carney, whose ruling liberal party has only a minority of seats in parliament and relies on opposition parties to survive confidence votes.
The leader of the Conservatives, the largest opposition party, this week accused Carney of an overly soft approach to the United States.
Carney's predecessor as prime minister, Justin Trudeau, on March 6 had imposed 25 percent tariffs on $21 billion worth of goods imported annually from the U.S., in response to Trump's initial tariffs./REL