Canada removing retaliatory tariffs on many U.S. goods | CBC News

Trade Policy Changes

🔄 Q: What major change is Canada making to its trade policy with the US?
A: Canada is removing retaliatory tariffs on most US goods, except for steel, aluminum, and autos, effective September 1, 2025.

🤝 Q: How does this move align with the US trade policy?
A: It's a reciprocal move, providing the same exemption for USMCA-originating goods as the US provides for KUSMA-originating goods.

💼 Q: What is Canada's best trade deal with the US?
A: The CUSMA agreement, with an average tariff rate of 5.6% compared to the global average of 16%.

Economic Impact

💰 Q: How will this change affect Canadian consumers?
A: Consumers will likely see reduced prices on many US goods due to the removal of retaliatory tariffs.

🏭 Q: Which industries in Canada will remain protected?
A: The steel, aluminum, and auto industries will continue to have tariffs on US imports.

🌐 Q: What percentage of goods are tariff-free under KUSMA?
A: 85% of goods are tariff-free under the KUSMA agreement.

Strategic Negotiations

🗣️ Q: What is Canada's goal in removing these tariffs?
A: To kickstart talks with the US and remove irritants with President Trump.

⏱️ Q: How long is the expected timeline for KUSMA review discussions?
A: Discussions are expected to take 6-12 months, or possibly up to 18 months.

🛡️ Q: What strategic sectors is Canada focusing on in discussions with the US?
A: Canada is focusing on steel, aluminum, autos, and lumber sectors.

Support for Affected Industries

💪 Q: How will Canada support industries hit by US tariffs?
A: Through initiatives like liquidity for businesses, capital investments, new supply programs, and industrial strategies.

🏗️ Q: What broader economic strategies is Canada implementing?
A: Canada is focusing on nation-building projects, defense industrial strategies, and new partnerships in defense and security.

👷 Q: What are the expected outcomes of these strategies?
A: They aim to create higher-paying careers, catalyze investment, and transform Canadian strategic sectors.

International Cooperation

🌍 Q: What international coalition is Canada participating in?
A: The "coalition of the willing" with the US, UK, France, Italy, Australia, New Zealand, Japan, and other European countries.

🇺🇦 Q: What is the purpose of this coalition?
A: To develop security guarantees for Ukraine, including land, air, and sea guarantees.

Business and Union Reactions

👍 Q: How has the Canadian Federation of Independent Business reacted?
A: They welcome Ottawa's decision to drop some retaliatory tariffs.

👎 Q: What is Unifor's stance on the decision?
A: Unifor, Canada's largest private sector union, is unhappy as their workers are acutely exposed in the auto sector.

Future Trade Strategies

🔍 Q: What new consultations is the Canadian government launching?
A: Consultations to assess priorities in the new global trade environment.

🛠️ Q: What comprehensive strategy is the Canadian government planning?
A: A new comprehensive industrial strategy to protect Canadian jobs, boost competitiveness, buy Canadian goods, and diversify exports.

Challenges and Expectations

⚖️ Q: What challenge does Canada face in its trade relationship with the US?
A: Canada is worse off and more exposed than before due to the US's "wrecking ball" trade policy.

📊 Q: How will the success of Canada's approach be judged?
A: By the final resolution of the trade dispute and the government's ability to manage negotiations.

Expert Opinions

🗣️ Q: What does Laura Dawson of the Future Borders Coalition think about the move?
A: She believes it preserves Canada's KUSMA advantage but will "make Canadians' heads spin" as it shifts from an "elbows up" to a "defensive maneuver".

💼 Q: What's Beth Burke's (CEO of Canadian American Business Council) view?
A: She supports the move, believing it will "get business back to business" and focus conversations on bringing businesses back to the table.

Political Implications

🗳️ Q: How might this decision affect the Prime Minister politically?
A: It could help the Prime Minister if the economy stays strong, according to William Pelerin.

📰 Q: How does Aaron Wear (CBC reporter) characterize the announcement?
A: As "more process-oriented" and not addressing the core issues of the steel and auto sectors.

Current Tariff Situation

🏗️ Q: What is the current tariff situation between the US and Canada on steel and aluminum?
A: The US has a 50% tariff on Canadian steel and aluminum, while Canada has a 25% tariff in response.

🚫 Q: Is Canada planning to match the US tariffs?
A: The Prime Minister is not raising tariffs to match the US today but will look at it in the future.

Collaborative Efforts

🤝 Q: How is the federal government working with provinces?
A: They're collaborating to provide liquidity and capital to help businesses diversify and retool.

🌟 Q: What approach by premiers is the Prime Minister praising?
A: Their collaborative approach to supporting workers and businesses affected by the tariffs.

 

Trade Policy Shift

🔄 Canada is removing retaliatory tariffs on many U.S. goods, effective September 1, 2025, to preserve the economic relationship with the U.S. and align more closely with U.S. measures.

🤝 The decision represents a pivot from the previous "elbows up" approach, as retaliatory tariffs were harming Canadian businesses and not advancing trade goals.

🌐 Canada's best trade deal with the U.S. is through KUSMA, with a 5.6% average tariff rate compared to the 16% global average, and 85% of trade being tariff-free.

🚫 Canada will maintain 25% import taxes on U.S. steel and aluminum products and tariffs on U.S. automobiles, focusing on strategic sectors.

U.S. Trade Approach

🇺🇸 The U.S. has become increasingly protectionist under President Donald Trump, slapping tariffs on countries worldwide and insisting on reciprocal deals.

🏭 U.S. has imposed sectoral tariffs on steel, aluminum, autos, and copper, targeting strategic industries to move all car manufacturing inside the continental U.S.

🛡️ The U.S. has always provided exemptions for KUSMA-originating goods, while Canada's counter tariffs did not, making them more punitive.

Canadian Strategy

🎯 Canada is shifting from a "stick" to a "carrot" approach, offering benefits and incentives to the U.S. in exchange for trade concessions.

💼 The government will soon announce a new comprehensive industrial strategy to protect Canadian jobs, boost competitiveness, and diversify exports.

🤝 Canada is intensifying discussions with the U.S. to address trade challenges in strategic sectors and seize immediate opportunities in trade, investment, and security.

Economic Impact

📊 The removal of retaliatory tariffs may help some sectors, like orange juice, but it's unclear if it will mitigate the political impact for the government.

🏗️ The U.S. has stockpiled inventory to get ahead of tariffs, building resilience for U.S. businesses and the job market.

🚗 The Canadian auto sector is heavily damaged and highly integrated with the U.S., making it particularly vulnerable to trade disputes.

International Cooperation

🌍 Canada is participating in a coalition of willing countries to provide security guarantees to Ukraine, including discussions with the U.S., UK, France, and others.

🛡️ The Canadian government plans to transform its military and security capabilities to defend Canadians and establish new partnerships in defense and security.

Public Perception

🧠 The Canadian public has been conditioned to think about trade policy in terms of toughness and retaliation, making it challenging to explain the decision to remove tariffs.

📰 The decision is seen as a departure from the previous strategy of targeting specific U.S. products to inflict pain on Republican politicians and their districts.

Negotiation Tactics

🗣️ The removal of retaliatory tariffs is an effort to kickstart talks with the U.S. and remove irritants in the trade relationship.

🔄 The Canadian government is learning to deal with a different Trump administration, which is more intrigued by tariffs and requires a different game plan.

Domestic Collaboration

🤝 The government is saluting premiers for their collaborative approach in supporting workers and businesses affected by the trade dispute.

💰 Support measures include providing liquidity and capital to the steel sector to mitigate the impact of trade tensions.

Trade Experts' Perspectives

👨💼 William Pellerin, an international trade expert, views the decision as a necessary step to preserve the economic and trading relationship with the U.S.

👩💼 Laura Dawson, executive director of the Future Borders Coalition, believes the removal of retaliatory tariffs is a strategic move to focus on highly integrated and vulnerable sectors.

🤝 Beth Burke of the Canadian-American Business Council sees the decision as a positive step to reengage the U.S. in trade talks.

Timeline and Implementation

📅 The removal of retaliatory tariffs on U.S. goods will take effect on September 1st, 2025.

🔄 This decision is part of an ongoing effort to recalibrate the trade agreement, which has been in progress since January 2020.

Media Analysis

📺 CBC News hosts and analysts view the decision as a significant shift in approach to resolving the trade dispute with the U.S.

❓ There is uncertainty about whether this move will ultimately get Canada closer to a resolution on other trade issues with the U.S.

Economic Nationalism

🏛️ The Canadian government's strategy is a response to the U.S. president's era of economic nationalism and protectionism.

🌐 Canada's connection with the U.S. has become a vulnerability rather than a strength due to the changing trade landscape.

 

• 00:00 🇨🇦 Canada removes retaliatory tariffs on many US goods to ease tensions and improve trade relations.
  • Canada plans to drop retaliatory tariffs on many US goods, a move seen as a concession to lower tensions with the US, amid criticism that the tariffs may not be effective in achieving their intended goal.
  • Canada is removing retaliatory tariffs on many US goods, except for steel, aluminum, and automobile products, in a move that may signal a shift towards a more collaborative approach to trade relations with the US.
  • Canada is set to remove retaliatory tariffs on many US goods in an effort to improve trade relations and find a balance in response to US tariffs, particularly on steel, autos, and aluminum.
  • Canada is removing retaliatory tariffs on many US goods, a move seen as a concession to the US and a recalibration of their trade relationship, potentially to protect the USMCA deal.
  • Canada is removing retaliatory tariffs on U.S. goods, which the White House welcomes as a step towards ongoing trade discussions.
  • Mark Carney is walking to the National Press Theater to make an announcement and take questions from reporters.
• 15:56 🇨🇦 Canada removes retaliatory tariffs on many US goods, a positive step towards renewed trade talks with the US.
  • Canada's removal of retaliatory tariffs on US goods may be a positive sign for renewed trade talks between Canada and the US.
  • Canada's removal of retaliatory tariffs on US goods is a positive step, but the bigger prize is getting the US to drop sectoral tariffs on steel, aluminum, and autos.
  • Canada is removing retaliatory tariffs on many US goods amid concerns that its industries, particularly steel and aluminum, are vulnerable to US trade policies and are already experiencing layoffs and slowdowns.
  • Canada will remove retaliatory tariffs on many US goods, except for steel, aluminum, and automobiles, in a move to align with US trade measures.
  • Canada's Prime Minister announced the removal of retaliatory tariffs on many US goods after a "productive and wide-ranging" phone call with President Donald Trump.
  • Canada's negotiations with the US have been influenced by the US's new trade policy, which requires countries to buy access to the US market through tariffs, investments, and policy changes.
• 26:40 🇨🇦 Canada removes retaliatory tariffs on many US goods to preserve trade deal and strengthen economic ties with the US.
  • Canada is removing retaliatory tariffs on many US goods to preserve its advantageous trade deal with the US and settle outstanding trade matters.
  • Canada will remove retaliatory tariffs on many US goods effective September 1st, 2025, while retaining tariffs on steel, aluminum, and autos, and will intensify trade discussions with the US to address challenges and seize opportunities.
  • Canada will announce a new industrial strategy to boost competitiveness, create jobs, and diversify exports, while also building new trade partnerships and adapting to a changing economic reality with the US.
  • Canada is aligning its trade policies with the U.S. to secure a strategic agreement on key sectors like aluminum, steel, and auto before the upcoming Kusma review.
  • Canada is retaining tariffs on US steel and aluminum but removing retaliatory tariffs on many US goods to preserve a low average tariff rate and support affected industries.
  • Canada has sent a message to the US by imposing retaliatory tariffs and now it's time to move forward and engage in a more collaborative and beneficial relationship.
• 41:29 🇨🇦 Canada removes retaliatory tariffs on many US goods to strengthen economic ties and focus on mutual opportunities under the new USMCA trade agreement.
  • Canada's Prime Minister is visiting Germany and other European countries to deepen economic and security partnerships, building on existing free trade agreements and exploring opportunities in areas like critical minerals, energy, and defense.
  • Canada is removing retaliatory tariffs on many US goods to build on a strong foundation in its relationship with the US and focus on areas of mutual opportunity, despite criticism that it amounts to appeasing Donald Trump.
  • Canada is removing retaliatory tariffs on many U.S. goods while maintaining a focus on protecting its strategic sectors and respecting trade agreements.
  • Canada is in discussions with the US and is re-evaluating trade policies, including removing counter tariffs, to benefit Canadian workers and economy, ahead of potential further negotiations.
  • Canada is removing retaliatory tariffs on many US goods to match the US's recent actions and focus on strategic sectors with mutual benefits under the new USMCA trade agreement.
  • Dropping the gloves early in a game can be strategic, but doing so late may lead to unnecessary penalties.
• 53:07 🇨🇦 Canada is removing retaliatory tariffs on many US goods, effective September 1, in an effort to restart trade talks and improve relations with the US.
  • Canada and the US are restarting negotiations to remove retaliatory tariffs on many US goods, with the Canadian Prime Minister having discussed the matter with President Trump.
  • Canada and the U.S. are collaborating within a coalition of 30 countries to develop security guarantees for Ukraine, emphasizing the importance of a strong Ukrainian military and the U.S.'s critical role in achieving peace.
  • Canada will drop retaliatory tariffs on US goods that comply with the Canada-US-Mexico free trade agreement, effective September 1, in an effort to restart trade talks with the US.
  • Canada is removing retaliatory tariffs on many US goods, a move seen as a logical step to reopen the relationship and allow freer supply chains, but with potential long-term impacts dependent on US businesses meeting new North American content rules.
  • Canada is removing retaliatory tariffs on many US goods, a move that may be seen as a capitulation, but also as a necessary step to advance trade relations and potentially save a trade deal.
  • Laura Dawson welcomes Canada's move to remove retaliatory tariffs on many US goods, calling it the right decision at the right time.
• 01:07:11 🇨🇦 Canada has lifted retaliatory tariffs on many U.S. goods to enhance trade relations and facilitate negotiations, though challenges remain.
  • Canada has removed retaliatory tariffs on many US goods to preserve its preferential access to the US market and maintain the CUSMA advantage, while focusing on resolving sectoral tariffs, particularly on steel and autos.
  • Canada's removal of retaliatory tariffs on US goods is seen as a positive step forward, but optimism is cautious as there are no guarantees it will lead to a resolution in trade negotiations with the US.
  • Canada is removing retaliatory tariffs on U.S. goods to facilitate discussions on the USMCA and strengthen trade relations, despite ongoing challenges with U.S. tariffs.
  • Canada is removing some retaliatory tariffs on U.S. goods to promote free trade and strengthen the interconnected economies of both countries, despite challenges in eliminating all tariffs.
  • Canada's removal of retaliatory tariffs on many US goods will benefit consumers and certain groups, even if trade negotiations with the US do not advance.
  • Canada is reassessing its approach to U.S. relations, balancing between effective negotiation and the risk of endless appeasement.
• 01:22:08 🇨🇦 Canada removes retaliatory tariffs on many US goods to ease trade tensions and potentially restart talks with the US.
  • Canada's removal of retaliatory tariffs on U.S. goods aims to preserve trade, but critical sectors like auto and steel continue to face significant challenges and job losses.
  • Canada is removing retaliatory tariffs on U.S. goods in hopes of reaching a compromise on steel, aluminum, and the auto sector, while acknowledging the changing trade dynamics with the U.S.
  • Canada is effectively mitigating losses by having the US president force a situation that results in an enormous toll on the US and its allies, while a new trade paradigm is emerging.
  • Canada's removal of retaliatory tariffs on U.S. goods may provide some immediate savings for consumers and businesses, but broader discussions on spending cuts and societal direction remain crucial.
  • Canada is dropping most of its retaliatory tariffs on US goods compliant with the Canada-US-Mexico trade agreement, effective September 1st, in an effort to smooth trade relations and potentially kickstart talks with the US.
  • Canada has removed retaliatory tariffs on many US goods, but steel, aluminum, and automobile tariffs remain, as the country hopes this move will help ease trade tensions and negotiations with the US.
• 01:34:41 🇨🇦 Canada is removing retaliatory tariffs on U.S. goods to foster collaboration, but faces political challenges and pressure over unresolved trade issues, particularly in dairy.
  • Canada is shifting its approach to resolving trade issues with the US, moving from a confrontational stance to a more collaborative one.
  • Canada is removing retaliatory tariffs on U.S. goods, but the government faces political challenges and pressure regarding unresolved trade issues, particularly in the dairy sector.
  • The Canadian prime minister's handling of US-Canada negotiations, including the recent removal of retaliatory tariffs, will be judged on the final resolution and whether Canadians feel it's the best possible outcome.
  • Canada's removal of retaliatory tariffs on US goods may not match business community expectations, with some sectors seeking counter tariffs on US products in response to new US steel tariffs.
  • Canada will announce a new industrial strategy to protect jobs, boost competitiveness, and diversify exports, amid concerns that US tariffs and economic nationalism will drive up costs.
  • Canada will drop most retaliatory tariffs against the US on goods compliant with the Canada-US-Mexico trade agreement, effective September 1.

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