Prime Minister Mark Carney said Canada will scrap most retaliatory tariffs on U.S. goods covered by the USMCA as of Sept. 1, describing the move as a necessary step to restart trade talks with Washington after months of tensions. Carney told reporters the revised stance leaves in place 25 per cent duties on steel, aluminum and autos but lowers Canada’s average tariff on U.S. imports to roughly 5.5 per cent—well below the global average. He said the North American free-trade pact now operates in a “very different trade environment” and will need significant changes to reflect new U.S. priorities. The announcement followed Carney’s first phone call in two months with President Donald Trump, who signalled that lifting the counter-tariffs would "kick off negotiations." Ontario Premier Doug Ford welcomed the prospect of talks but warned that any new deal must deliver relief for sectors still hit by U.S. duties or Canada should be prepared to “hit back hard.” Seeking to broaden Canada’s economic options, Carney also plans to travel to Berlin next week for meetings with German Chancellor Friedrich Merz aimed at deepening bilateral trade and investment ties.