Most of the retaliatory tariffs imposed by Ottawa on American goods earlier this year have been lifted, except for a few. Canada had imposed tariffs on U.S. goods amounting to $60 billion in response to American tariffs on various Canadian products. These tariffs were removed as of Monday, except for some duties on goods not compliant with the Canada-United States-Mexico Agreement (CUSMA), such as steel and aluminum products to counter U.S. tariffs on these industries.
Prime Minister Mark Carney announced on August 22 the removal of tariffs, emphasizing that it was crucial for Canada’s economic interests and a key aspect of negotiations with the U.S. Canada’s Trade Minister Dominic LeBlanc recently met with U.S. Commerce Secretary Howard Lutnick in Washington to further discuss trade relations between the two countries.
While LeBlanc described the meeting as constructive, he clarified that both countries are not on the brink of reaching an agreement. However, progress is being made in the discussions. The need for resolving outstanding issues remains a priority for the government following the withdrawal of counter-tariffs.
Criticism has been directed at Prime Minister Carney for his handling of the trade situation. Conservative Leader Pierre Poilievre accused Carney of displaying weakness on the international stage, calling the removal of tariffs a capitulation. Workers and producers affected by U.S. sectoral tariffs have also voiced disappointment over the removal of counter-tariffs.
The trade conflict stemmed from U.S. President Donald Trump’s initial imposition of tariffs on Canadian exports, leading to retaliatory measures from Canada. The situation escalated with subsequent tariff adjustments on various goods between the two countries.
The compliance with the Canada-U.S.-Mexico Agreement (CUSMA) has been a focal point of the trade dispute, with both sides claiming violations. The national security exemptions in the agreement have been a contentious issue, with differing views on whether the actions taken are in line with the spirit of the deal.
The future of trade negotiations between Canada and the U.S. remains uncertain, with potential legal challenges and ongoing discussions. The possibility of a tariff-rate quota and legal battles over tariffs may influence the outcome of the trade dispute. Both countries are preparing for upcoming CUSMA talks, with efforts to address the current tariff conflicts as a top priority.