Most of the retaliatory tariffs imposed by Ottawa on American goods earlier this year have been lifted, with a few exceptions. Canada had imposed tariffs on $60 billion worth of U.S. goods in response to American tariffs on various Canadian products. These tariffs were removed as of Monday, except for certain non-CUSMA-compliant goods like steel and aluminum products facing U.S. tariffs.
Prime Minister Mark Carney announced on August 22 that these tariffs would be lifted, citing them as a hindrance in negotiations with the U.S. and not in Canada’s economic interest. Canada-U.S. Trade Minister Dominic LeBlanc visited Washington last week to meet with U.S. Commerce Secretary Howard Lutnick.
Although LeBlanc described the discussions as productive, he mentioned on Wednesday that both countries are not close to reaching an agreement. The trip helped clarify the remaining work to be done, indicating progress without imminent resolution.
Criticism has been directed at Carney’s handling of the situation, with Conservative Leader Pierre Poilievre accusing him of displaying weakness internationally. Workers and producers affected by U.S. tariffs have also expressed disappointment with the removal of counter-tariffs.
President Donald Trump initiated new tariffs even before returning to the White House in January, with escalating trade actions between the U.S. and Canada. The trade deal, CUSMA, signed during Trump’s first term, has been a focal point in the dispute.
The future of the trade relations between Canada and the U.S. remains uncertain, with legal challenges to Trump’s tariffs and ongoing negotiations anticipated. The resolution of these trade disputes is essential for both countries, with talks expected to intensify as the situation evolves.
