Prime Minister Mark Carney says Canada is taking bold steps to respond to the United States’ sweeping shift in trade policy.
In a statement today, Carney confirmed that Canada now holds the most favourable trade deal the U.S. has with any partner. Over 85% of Canadian exports remain tariff-free under the Canada-United States-Mexico Agreement (CUSMA).
As of September 1, Canada will drop all tariffs on U.S. goods covered by CUSMA, restoring free trade on most items.
However, Canadian tariffs will stay in place on steel, aluminum, and autos as both countries work to resolve ongoing issues in those strategic sectors.
Carney announced that public consultations will begin next month ahead of the 2026 CUSMA review. The government will use that input to shape a new trade and security relationship with the U.S.
In the face of global uncertainty, Carney also outlined a forthcoming industrial strategy focused on protecting Canadian jobs, diversifying exports, and boosting investment.
The plan includes nation-building infrastructure, expanded defence capabilities, and a new approach to housing and supply chain security—all aimed at building long-term resilience in the Canadian economy.
