Prime Minister Mark Carney says Canada has secured the best trade deal with the United States despite sweeping changes in Washington’s trade policy, but warned the days of automatic economic integration between the two countries are over.
“Let’s be clear, Canada currently has the best trade deal with the United States,” Carney said Friday. “While it is different from what we had before, it is still better than that of any country.”
The prime minister’s comments came as his government announced it will remove all tariffs on American goods covered under the Canada-United States-Mexico Agreement (CUSMA), effective Sept. 1. Carney said the move matches Washington’s commitment that compliant Canadian exports would not face new U.S. tariffs imposed under the International Emergency Economic Powers Act.
“As a result, the actual U.S. average tariff rate on Canadian goods is 5.6 per cent and remains the lowest among all its trading partners,” Carney said. “More than 85 per cent of Canada-U.S. trade is now tariff-free.”
The announcement comes against the backdrop of a major overhaul in U.S. trade policy, which Carney said has shifted from traditional free-trade principles to one in which countries must “buy access to the world’s largest economy” through tariffs, investments, and policy changes.
While Canada is dropping tariffs on a wide range of U.S. imports, restrictions on steel, aluminum and autos will remain as both governments continue what Carney called “intensive” negotiations over those strategic industries.
“Our focus now is squarely on these strategic sectors and the future,” he said, adding that Ottawa will begin consultations next month ahead of next year’s scheduled CUSMA review.
Carney framed the shift in continental trade relations as an opportunity for Canada to strengthen its economic independence. He said the government will soon unveil a new industrial strategy aimed at protecting jobs, diversifying exports, and boosting competitiveness across sectors from agriculture to autos.
“We can and must adjust to this new reality,” he said. “That means concentrating on trade, investment and security partnerships that preserve our sovereignty.”
The prime minister also linked the trade agenda to broader domestic policy, pledging “nation-building projects” to accelerate housing construction, overhaul strategic sectors hit by U.S. tariffs, and expand Canada’s defence and security industries.
“For decades, the Canadian and U.S. economies have become steadily more integrated, continually more deeply connected,” Carney said. “That process is now over.”
He said his government’s goal is to shift Canada “from reliance to resilience: building our strength at home, developing new markets abroad, creating new opportunities for Canadian workers and businesses as we build the strongest economy in the G7.”
