Announcement makes Canadian businesses cautiously optimistic
Canada will remove most of its retaliatory tariffs on United States goods in a bid to revive stalled trade talks, prime minister Mark Carney announced Friday, signaling a shift in tone as Ottawa adopts a softer approach with Washington.
Carney said the government will lift duties on US products covered under the Canada-United States-Mexico Agreement (CUSMA), matching a recent American move. “Canada and the US have now re-established free trade for the vast majority of our goods,” he told reporters on Parliament Hill. Tariffs on US autos, steel, and aluminum will remain in place.
The announcement followed a call between Carney and US president Donald Trump on Thursday. Asked whether removing tariffs would re-energize talks, Carney replied, “Yes.” Trump described the decision as a “nice thing,” telling reporters, “We are working on something. We want to be very good to Canada. I like Carney a lot,” according to Reuters.
Change of stance
The rollback marks a departure from Carney’s tougher stance earlier this year. In April, he pledged to stand firm against Trump’s tariff hikes but has since scrapped a proposed digital services tax and stepped back from sanction threats.
Canada’s counter-tariffs date back to March, when former prime minister Justin Trudeau imposed 25% duties on C$30 billion in US goods after Trump doubled tariffs on Canadian steel and aluminum. The measures targeted consumer and industrial imports ranging from household appliances to food staples.
Economists say their removal could ease costs for households and businesses. “It’s orange juice, peanut butter, craft beer, ketchup, coffee pods, refrigerators, washing machines, microwaves, lawn mowers … denim jeans, running shoes, bicycles, lipstick, other cosmetics, toothpaste, paper towels, bed sheets,” financial analyst Michael Campbell told Global News, listing items expected to become cheaper. “No matter which side of the border you’re on, tariffs are a bad deal for consumers and businesses because they pay the tariff, no matter which country.”
Business leaders called the move pragmatic. Goldy Hyder, president of the Business Council of Canada, said the priority must be preparing for the 2026 review of CUSMA. “While there is more work to be done to resolve tariffs in strategic sectors, Canada’s priority must be the successful review and renewal of the US-Mexico-Canada Agreement,” he said.
Businesses show cautious optimism
In Ottawa, business owners voiced cautious optimism. Jason Tasse, president of Lee Valley Tools, told CBC News the shift was “an act of good faith” but warned the uncertainty makes planning difficult. Paul Meek, owner of Kichesippi Beer Co., called it an “olive branch,” adding that he hopes it signals “more good news for the economy.”
Others were less optimistic. Ambico CEO Jack Shinder said his manufacturing firm had been “deeply impacted” by tariffs and saw little benefit from retaliation. “We thought the imposition of retaliatory tariffs would lighten the tariff load … I think that has had very little if no effect,” he said.
Carney acknowledged the road ahead would be challenging but defended his strategy. “Let’s be clear, we have the best deal of anyone in the world right now,” he said. “Nobody has a deal with the United States that they used to have.”
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