Overview

• Most Canadian retaliatory duties on U.S. goods have come off as of Monday, following Prime Minister Mark Carney’s Aug. 22 decision to ease a key hurdle to talks.
• Tariffs remain on non‑CUSMA‑compliant goods, notably steel and aluminum, to counter continuing U.S. sectoral measures.
• Trade Minister Dominic LeBlanc met U.S. Commerce Secretary Howard Lutnick in Washington last week and reported progress but no near‑term deal.
• The dispute escalated after the U.S. imposed broad tariffs, including a 25% levy on many Canadian exports and a later increase to 50% on steel and aluminum, prompting Canadian duties that peaked at about $60 billion in U.S. goods.
• The pullback has drawn criticism from opposition leader Pierre Poilievre and industry groups, and related U.S. tariffs face legal tests including an appeals court finding fentanyl‑linked levies unlawful while allowing them to stand pending further appeal.