Canada drops many of its retaliatory tariffs on the U.S.
NBC3 days
Canada to Remove Retaliatory Tariffs on Some US Goods
Above: Mark Carney during a news conference in Ottawa, Canada, on Aug. 22, 2025. Image copyright: David Kawal/Bloomberg/Getty Images
The Spin
Pro-Trump narrative
Trump's strategic approach forced Canada to abandon its failed retaliatory strategy and accept economic reality. America holds the leverage in this relationship, and Canada has ultimately recognized that it cannot afford a prolonged trade war with its largest trading partner. The move demonstrates that Trump's effective negotiating tactics are bringing results.
Anti-Trump narrative
This is no capitulation on the part of Canada, but rather a move to better align U.S. measures, as the Trump administration reaffirmed an exemption to the current U.S. blanket tariff of 35% for all USMCA-compliant Canadian goods. While counter-tariffs have been mostly neutral for Canada, dropping them may pave the way for a successful USMCA renegotiation next year and for new U.S. concessions.