WASHINGTON — Canada-U.S. Trade Minister Dominic LeBlanc is scheduled to meet with U.S. Commerce Secretary Howard Lutnick in Washington this week. This meeting follows Canada's announcement that it will lift some retaliatory tariffs on U.S. products. LeBlanc's office confirmed he will travel to the U.S. capital on Tuesday.

Prime Minister Mark Carney revealed last Friday that Canada will remove certain tariffs to align with American tariff exemptions under the Canada-United States-Mexico Agreement (CUSMA). However, Canada will maintain its counter-tariffs on steel, aluminum, and automobiles.

U.S. President Donald Trump described the decision to lift some duties as "nice" and stated that it was "long overdue." LeBlanc noted that the retaliatory tariffs had been a "significant point of contention" in negotiations, especially after Trump raised duties on Canada to 35 percent earlier this month. These increased duties do not apply to goods compliant with CUSMA.

The White House cited concerns over the flow of fentanyl and retaliatory tariffs as reasons for the increased levies. In March, Canada imposed 25 percent tariffs on a wide range of American goods, including oranges, alcohol, clothing, shoes, motorcycles, and cosmetics. The CUSMA exemption for American imports is set to take effect on September 1.

The response to Ottawa's tariff adjustments has been mixed in Canada. Conservative Leader Pierre Poilievre criticized the move, calling it a representation of Carney's "capitulation and climbdown." In contrast, the Canadian Federation of Independent Business described it as "a step in the right direction."

LeBlanc has emphasized that he is in constant communication with Lutnick. He has met with him several times in Washington in advance of Trump's trade deal deadline of August 1. LeBlanc aims to negotiate a bilateral agreement that mitigates the impact of Trump's tariffs on steel, aluminum, copper, lumber, and automobiles.

Despite ongoing negotiations, Trump has shown reluctance to alter sector-specific tariffs or ease economy-wide duties. On Monday, he stated that America is "the most respected we have ever been," highlighting the revenue generated from duties.

The reduction of some of Canada’s counter-tariffs could help ease tensions ahead of a review of the continental trade pact scheduled for next year. Initial negotiations are expected to begin in the coming months. CUSMA is vital for Canada as Trump seeks to realign global trade, ensuring that most Canadian goods remain tariff-free. This trilateral trade agreement was established during Trump's first administration to replace the North American Free Trade Agreement.