<h1>Government removes retaliatory tariffs, mirrors U.S. USMCA exemptions, restores tariff-free trade while keeping steel, aluminum, auto duties</h1> The government will remove retaliatory tariffs to mirror U.S. exemptions for goods covered by the USMCA, restoring tariff-free treatment for the vast majority of bilateral trade while preserving existing tariffs on steel, aluminum and autos imposed under national security authorities. The move aligns Canada's stance with U.S. carve-outs, aims to reset trade talks ahead of a USMCA review in 2026, and maintains preferential treatment claims for Canadian and Mexican firms under the pact. The decision follows bilateral discussions between leaders and continues sector-specific duties that remain in force.