The Canadian government has quietly eliminated more counter-tariffs on American products than previously disclosed. An order-in-council published last month reveals that, aside from sector-specific tariffs on steel, aluminum, and automobiles, all Canadian retaliatory tariffs have been lifted. This move appears to contradict statements made by Prime Minister Mark Carney regarding the decision.

In August, Carney pledged to remove counter-tariffs on U.S. goods that are "specifically covered under CUSMA," the Canada-U.S.-Mexico Agreement. This commitment was intended to align with U.S. President Donald Trump's 35 percent tariffs on Canadian goods not included in the trade agreement. However, the official order indicates that products crossing the border that do not comply with CUSMA are not subject to counter-tariffs, suggesting that Canada's approach is not entirely reciprocal.

During a recent event in Mexico City, Carney emphasized the importance of individual reviews ahead of collective discussions to strengthen the economies involved in CUSMA renegotiations set for next year. William Pellerin, an international trade lawyer, noted, "The way the prime minister appeared to announce this was to be more by way of matching what the U.S. is doing to Canada. I think the answer is there may be some political element where the government wanted to look more quid pro quo."

Carney's announcement was made on August 22, with the official notice following on August 29. The timeline of the policy shift remains unclear, as a spokesperson for the finance minister's office did not provide a response to inquiries about it. Pellerin suggested that the revenue generated from counter-tariffs on non-CUSMA-compliant goods would likely be minimal and insufficient to justify the costs of hiring additional staff at the Canada Border Services Agency for enforcement.

He stated, "In many ways, it made sense to drop the counter-tariffs altogether. It was a lot of additional compliance work and enforcement for very limited benefit." While most goods crossing the border can become CUSMA compliant, achieving this status requires meeting specific criteria and completing extensive paperwork, which some trade experts have described as cumbersome and costly.

A spokesperson for Finance Minister François-Philippe Champagne stated that the government's primary goal is to advance trade negotiations with the United States. "The government was elected to negotiate a strong deal—not just any deal, but a good deal that protects Canadian workers and industries, advances Canada's economic priorities, and puts our industrial might to good use," said spokesperson John Fragos.

The government's trade strategy has faced criticism from Conservative Leader Pierre Poilievre, who accused Carney of making "generous concessions" to the U.S. without receiving anything in return. Poilievre also mocked Carney's "elbows up" slogan, suggesting that the prime minister's assertiveness has diminished.