Most of Canada’s retaliatory tariffs are gone. Now what?
After months of back-and-forth tariffs between Canada and the U.S., most of the counter-tariffs imposed by Ottawa on American goods have now been lifted. The move comes after Prime Minister Mark Carney announced the decision to remove the tariffs, stating that it was in Canada’s best economic interest to do so.
Canada had initially placed duties on $60 billion worth of U.S. goods in response to American tariffs on various Canadian products. While most of these tariffs have been removed, some levies still remain on non-CUSMA-compliant goods, such as steel and aluminum products. These tariffs were put in place to counter U.S. tariffs targeting those industries.
Trade Minister Dominic LeBlanc recently traveled to Washington to meet with U.S. Commerce Secretary Howard Lutnick, marking the first in-person meeting between the two countries since July. While the discussions were described as constructive, both parties acknowledge that there is still work to be done before reaching a final agreement.
The decision to lift the tariffs has been met with mixed reactions. Conservative Leader Pierre Poilievre criticized Carney for showing “weakness” on the international stage, calling it a “capitulation.” Industry leaders, such as Catherine Cobden of the Canadian Steel Producers Association and Marty Warren of the United Steelworkers, expressed disappointment over the removal of the counter-tariffs, citing the need to protect Canadian industries and workers during the ongoing trade war.
The ongoing trade dispute between Canada and the U.S. dates back to earlier this year when President Donald Trump imposed tariffs on Canadian exports. Canada retaliated with its own tariffs, leading to a series of escalations and countermeasures. The situation escalated further when Trump imposed tariffs on steel and aluminum imports, to which Canada responded with additional counter-tariffs.
As the two countries continue to navigate through the trade dispute, the future remains uncertain. Legal challenges against some of Trump’s tariffs are underway, with potential implications for the ongoing negotiations. While some experts suggest that a negotiated settlement is the most likely outcome, the path forward is still unclear.
With the CUSMA agreement up for review next year, both Canada and the U.S. are gearing up for discussions on trade policies. However, the immediate focus remains on resolving the current tariff issues and finding a mutually beneficial solution for both countries.
