Prime Minister Mark Carney of Canada. Yonhap News. 

The Canadian government has decided to withdraw retaliatory tariffs on U.S. products that comply with the United States-Mexico-Canada Agreement (USMCA).

At a press conference broadcast by Canadian TV network CBC on the 22nd (local time), Prime Minister Mark Carney said, "We will remove the tariffs on U.S. products applicable to the USMCA," and added, "Canada and the United States are now resuming free trade for most goods."

Carney also added, in line with U.S. measures, "Tariffs on automobiles, steel, and aluminum will remain at their current level (25%)."

The tariff repeal will take effect on the 1st of next month, AFP reported, citing Canadian officials.

The U.S. government expressed its welcome, stating, "We look forward to continuing discussions with the Canadian government on trade and national security issues," Reuters reported.

This measure was announced just one day after U.S. President Donald Trump and Canadian Prime Minister Carney held a phone conversation on issues including trade.

Canada's decision to impose retaliatory tariffs on U.S. products was mainly made at the end of former Prime Minister Justin Trudeau's (Liberal Party) term in March.

Carney, a member of the same party, was one of the few world leaders who signaled a strong stance against the U.S. government's tariffs and vowed to counter American protectionism after winning the general election in April.

However, he gradually softened his stance during a policy review process that lasted several weeks.

Carney, who scrapped the "digital services tax" plan in June, which had faced backlash from U.S. companies, announced in early last month that he would not consider additional tariffs on the United States.

Despite this, at the end of last month, President Trump signed an executive order raising tariffs on Canadian imports not covered by the USMCA from the existing 25% to 35%, putting further pressure on Canada.

U.S. President Donald Trump. Yonhap News. 

In this context, foreign media analyzed the Canadian government's announcement on this day as a move to resume stalled trade negotiations between the two countries in anticipation of the USMCA review.

Carney explained that over 85% of trade items between Canada and the United States are eligible for duty-free treatment under the USMCA, highlighting the USMCA as the cornerstone of Canada's economic policy. In fact, over 75% of Canadian exports go to the United States.

Mexico's presidential office reported that during a phone call with Mexican President Claudia Sheinbaum last month, they shared a commitment to the USMCA and pledged to strengthen relations based on the North American Free Trade Agreement.

Under the USMCA regulations, the United States, Mexico, and Canada have traded major goods and services, including automobiles, duty-free as one of the major pillars of the global bloc economic order.

The USMCA came into effect in July 2020, during the first term of the U.S. government under Trump.

President Trump, who welcomed the USMCA five years ago when his second term began in January of this year, calling it "the most fair and most balanced," later attacked the two neighboring countries in January of this year, shortly after the start of his second term, calling it an "unfair treaty."

This is seen as a strategic move to gain an advantageous position in the USMCA review, according to Mexican observers.

The USMCA has a duration of 16 years, with a review of its implementation every six years.

Although the first review is scheduled for next year, the three North American countries agreed to officially examine the implementation of the USMCA starting in the second half of this year. The acceleration of the timeline is also reportedly due to Trump's request.

Mexican media has reported on a sentiment within the U.S. government to renegotiate the entire USMCA, and the resulting caution within the Mexican government on several occasions.

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