Prime Minister Mark Carney said Friday that while Ottawa will roll back some of its retaliatory duties on U.S. goods starting Sept. 1, the tariffs most critical to the automotive supply chain will stay in place.
The announcement followed Carney’s first phone call with U.S. President Donald Trump since the two countries missed a deadline to reach a wider trade agreement.
Carney said Canada will match U.S. actions by ending tariffs on goods compliant with the USMCA trade pact, restoring “free trade for the vast majority” of cross-border products. Still, the unresolved dispute over vehicles and raw materials leaves collision repairers facing higher costs, tighter parts availability and longer repair timelines.
Ontario, the centre of Canada’s auto industry, has already reported 38,000 job losses in the past three months, the bulk in manufacturing. Industry observers warn the pressures are likely to persist as the tariffs remain in place.
Carney said talks on cars, steel, aluminium and lumber will now accelerate ahead of next year’s scheduled USMCA review.
