Canada has removed most of the retaliatory tariffs it imposed on U.S. goods earlier this year, with a few exceptions still in place. The Canadian government had initially placed duties on $60 billion worth of U.S. products in response to American tariffs on various Canadian exports. As of Monday, these tariffs have been lifted, although some levies remain on non-CUSMA-compliant goods, particularly steel and aluminum products, which were targeted by U.S. tariffs.

Prime Minister Mark Carney announced the removal of these tariffs on August 22, stating that they were a barrier in negotiations with the U.S. and that eliminating them was in Canada’s economic interest. Canada-U.S. Trade Minister Dominic LeBlanc visited Washington last week for discussions with U.S. Commerce Secretary Howard Lutnick, marking his first trip since July. LeBlanc described the talks as constructive but noted that the two countries are not close to reaching an agreement.

"The trip helped us move forward in the sense that we better understood the work that remains to be done," LeBlanc said in French. He emphasized that while progress is being made, an agreement is not imminent.

The removal of tariffs has drawn mixed reactions. Conservative Leader Pierre Poilievre criticized Carney, claiming that the decision reflects weakness on the international stage. He stated, "His elbows have mysteriously gone missing," suggesting that the Prime Minister has not been assertive enough in negotiations.

In contrast, some industry leaders expressed disappointment over the removal of counter-tariffs. Catherine Cobden, president and CEO of the Canadian Steel Producers Association, stated that the decision was disappointing, as reciprocal tariffs were seen as protective measures for Canadian industries during the trade conflict. Similarly, Marty Warren, national director of the United Steelworkers, urged the government to remain committed to protecting Canadian workers and building economic resilience.

The trade tensions began escalating when U.S. President Donald Trump signaled intentions to impose new tariffs shortly after taking office in January. He signed an executive order that taxed Canadian exports to the U.S. at 25 percent, with certain exceptions. Canada responded swiftly, imposing tariffs on $30 billion worth of U.S. goods. The situation intensified when Trump later announced a 25 percent tariff on all steel and aluminum imports, prompting Canada to retaliate with additional tariffs on U.S. products.

As the trade dispute continues, it remains uncertain when or if a resolution will be reached. Experts suggest that Canada may need to accept a tariff-rate quota on steel, aluminum, and copper, allowing a certain amount of these products to be imported before duties apply. Some of Trump’s tariffs are also facing legal challenges in the U.S., which could potentially aid Canada’s position.

While many Canadian goods are exempt from U.S. tariffs, steel remains a significant item still subject to taxation. The ongoing trade agreement, CUSMA, is set for review next year, and Carney has indicated that the government is preparing for those discussions while prioritizing the current tariff issues.