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.”