Canada announced it will remove many of its retaliatory tariffs on U.S. goods that are compliant with the United States-Mexico-Canada Agreement (USMCA), also known as the T-MEC trade pact. Prime Minister Mark Carney made the announcement on August 23, 2025, stating that the tariff rollback aims to match U.S. tariff exemptions and is intended to facilitate a new trade and security partnership with the United States. The 25% retaliatory tariffs, which had been imposed on a wide range of U.S. consumer products, will be lifted starting September 1. This move follows warnings from Canadian businesses and analysts that the levies were causing economic harm to Canada. The Canadian government expressed optimism about reaching a new trade agreement with the U.S. after this concession. Canadian and U.S. officials are scheduled to meet to continue negotiations, focusing on five key areas for potential win-win cooperation. Dominic LeBlanc, a senior Canadian minister, indicated hopes that the trade agreement would improve Canada's position. The White House welcomed Canada's decision as a goodwill gesture designed to restart stalled trade talks under the Trump administration. Discussions are ongoing to refine the announced trade deals and advance negotiations on economic and security relationships between the two countries.