Canada Eases Tariffs to Rekindle U.S. Trade Talks

Canada is set to announce the removal of several retaliatory tariffs on U.S. goods to revive trade negotiations. Prime Minister Mark Carney plans to address the press, while maintaining tariffs on autos, steel, and aluminum. The move aims to strengthen economic ties amidst political and economic challenges.

Canada is preparing to lift multiple retaliatory tariffs on U.S. goods this Friday in a move aimed at restarting halted trade discussions, according to a well-informed source. However, tariffs on automobiles, steel, and aluminum will remain, the source added, due to the ongoing sensitivity of the situation.

Prime Minister Mark Carney, who was elected on a promise to stand firm against U.S. tariffs imposed by President Donald Trump, will address the media at noon Eastern Time. The update has boosted the Canadian dollar, which rose by 0.5% to stand at C$1.3837 against the U.S. dollar, equivalent to 72.27 U.S. cents, by late morning.

The decision to ease some tariffs marks a diplomatic shift as Carney seeks to balance economic imperatives with political considerations, given his Liberal minority government and reliance on opposition parties. The Conservative opposition has criticized him for adopting a softened stance towards the United States.

(With inputs from agencies.)