Canada is taking a big step toward easing trade tensions with the United States. Prime Minister Mark Carney announced that by September 1, the federal government will remove most retaliatory tariffs on U.S. goods—a move he says will “ease inflationary pressure on Canadian families.”

The tariffs, originally imposed during the height of the trade standoff, targeted a wide range of American imports from ketchup to appliances. While most duties will be lifted, exceptions remain for key sectors like steel, aluminum, and automotive goods—areas Ottawa still sees as strategically important.

Carney defended the decision as a pragmatic shift, arguing that Canadians shouldn’t be paying higher prices at the checkout line just to maintain leverage in Washington. “It’s time to stickhandle these talks differently,” he said, hinting at renewed efforts to negotiate directly on issues like labor standards and supply chain resilience.

Not everyone is convinced. Critics argue that by dropping the tariffs, Canada is giving up its bargaining power just as the U.S. ramps up protectionist measures. Business leaders, however, welcomed the announcement, saying it will remove uncertainty and reduce costs for Canadian companies reliant on U.S. imports.

With tariffs winding down, Carney signaled the government will now turn its focus to nation-building projects—investments in infrastructure, clean energy, and housing—meant to strengthen Canada’s economy from within.