Carney quietly drops tariffs, puts elbows down even further
Prime Minister Mark Carney’s government quietly removed nearly all Canadian counter-tariffs on U.S. imports, according to an order-in-council published August 29.
Prime Minister Mark Carney’s government quietly removed nearly all Canadian counter-tariffs on U.S. imports, according to an order-in-council published August 29.
The move eliminates tariffs on all American goods except those in the steel, aluminum, and automotive sectors. That includes goods not covered under the Canada-United States-Mexico Agreement (CUSMA), which Carney previously said would remain subject to tariffs.
The order-in-council confirms that non-CUSMA-compliant goods entering Canada will no longer face the 25 per cent surtax unless explicitly listed in sectoral schedules.
The repeal rolls back broad surtax powers Canada had previously used to retaliate against U.S. protectionist measures under President Donald Trump.
Dozens of tariff codes under Chapters 98 and 99 of the Customs Tariff were removed.
The changes were made quietly, with retroactive application.
Some sections of the order stretch back retroactively to as early as March and April 2025.
Carney announced the tariff shift on August 22 following a call with President Trump. At the time, he said counter-tariffs would only be lifted on CUSMA-compliant goods, claiming the policy would benefit Canadian families and lower prices. He did not disclose that goods outside of CUSMA would also be exempted.
“Canada and the United States have re-established free trade for the vast majority of our goods,” Carney said. “We will continue to work intensively with the United States to resolve the issues that remain.”
The move comes ahead of a formal review of CUSMA later this year.
Conservative Leader Pierre Poilievre has accused Carney of offering generous concessions to the United States while getting nothing in return.
The August 29 order contradicts the public framing of the announcement and reflects a broader pattern.
In May, exemptions introduced by the prime minister had already nullified much of Canada’s tariff regime, despite earlier pledges to pursue “maximum impact” trade measures.
As reported last month, Carney has backed away from his campaign promise of taking an “elbows up” approach with Washington, opting instead for what he now calls a “pragmatic” strategy.
The Trudeau government imposed nearly $30 billion in counter-tariffs in early 2025; almost all have now been repealed under Carney.
Carnage has nothing on Pinocchio, he has done nothing but lie, if I was a banker, I would hang my head in shame……but then again who ever said a banker was honest, other than Carnage and his banking buddies!!