🛃 Ottawa Lifts Most Retaliatory Tariffs on U.S. Goods
Sept 25, 2025
Canada’s “Amending Order” (effective Sept. 1) repealed earlier orders that imposed 25% surtaxes on many U.S. goods in retaliation for U.S. tariffs. The move eliminates duties on about C$30.3 billion of imported goods (Govt of Canada), signalling Ottawa’s desire to reduce tension. However, separate orders for steel, aluminum and motor vehicles remain in effect, preserving 25% tariffs on those sectors and leaving targeted duties on U.S. manufacturers. The bulletin also noted that Canada’s surtax classifications were simplified to ensure consistency across customs tariff lines.
Removing broad counter-tariffs should lower prices for Canadian consumers and alleviate supply-chain headaches for retailers. U.S. goods ranging from dairy and grains to electronics are flowing more freely again, though the steel and auto industries remain in the cross-hairs.
Our Take
Ottawa’s rollback shows that the leverage that the Trump administration holds, and the extent to which Canada will be able to maintain broad tariffs as a long-term policy. That said, U.S. steel and auto tariffs remain in effect, and these are more likely to continue as economic sustainability measures.
While it would be satisfying to see the Carney government hold the line, this tariff rollback was likely inevitable. Moreover, Canadian businesses should welcome the relief on general imports, and consumers may see some price relief on everyday (foreign-made) goods. This could actually have a reverse effect on the Buy Canadian movement, by motivating price-conscious shoppers to select cheaper foriegn goods.
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