Canada Pushes for Full Exemption from Trump’s Tariffs Amid Trade Talks

Canada is pushing for a full exemption from all U.S. tariffs imposed under President Donald Trump’s trade policies, according to Canadian Ambassador to the U.S. Kirsten Hillman. Speaking to The Globe and Mail, Hillman, who also serves as Canada’s chief trade negotiator, expressed confidence in securing a comprehensive removal of levies through ongoing discussions with Washington.

The renewed negotiations follow Canada’s decision to withdraw a proposed digital services tax targeting U.S. tech firms—a move criticized by Trump and seen as a goodwill gesture to advance talks. Canadian Prime Minister Mark Carney has set a July 21 deadline to finalize a trade deal with the U.S., amid escalating pressure from Trump’s aggressive tariff strategy.

Currently, Canadian exports face significant barriers, including a 50% tariff on steel and aluminum and a 25% tariff on automobiles. Additional 25% duties apply to goods not covered under the U.S.-Mexico-Canada Agreement (USMCA), while exports of oil, gas, and potash are subject to a 10% tariff.

Although Canada and Mexico were temporarily exempt from Trump’s so-called “liberation day” tariffs, the administration has set a July 9 deadline for finalizing trade agreements with affected countries. The outcome of these negotiations could have major implications for North American trade relations and the Canadian economy.

Canada aims to restore tariff-free trade, strengthen its export competitiveness, and avoid further disruptions to key industries. As the deadline approaches, both sides are under pressure to reach a mutually beneficial agreement that avoids escalation and supports long-term economic stability.