Canada just rolled back tariffs on American steel and aluminum, signaling a surprising pivot in trade policy under Prime Minister Mark Carney.
Breitbart reported that Carney’s administration has lifted retaliatory tariffs on U.S. and Chinese metal imports, despite earlier promises to stand toe-to-toe with President Donald Trump’s tariff agenda, marking a shift toward warmer trade relations.
Let’s rewind to March, when Canada slapped tariffs on American goods in response to Trump’s hefty increases, with U.S. duties on Canadian steel and aluminum hitting a punishing 50%.
Fast forward to April, when Carney and his Liberal Party swept the general election with bold rhetoric about confronting Trump’s trade policies head-on.
“We are going to fight these tariffs with countermeasures,” Carney declared back then. But fighting words seem to have morphed into friendly handshakes—what happened to that promised grit?
Despite Canada’s exemption from many of Trump’s tariffs thanks to the USMCA trade agreement, Carney initially kept up the pressure with retaliatory measures. By September, though, most of those were quietly dropped, leaving only a 25% tariff on steel, aluminum, and cars.
Now, as of October 15, per a Canadian Ministry of Finance order reported by Reuters, even those metal tariffs are gone for both American and Chinese goods. It’s a full retreat from the earlier stance, with exemptions also carved out for U.S. products tied to public health, national security, and other key sectors.
Here’s the twist: despite campaigning as Trump’s toughest critic, Carney has cozied up to the U.S. president with a jovial rapport. Trump even endorsed him during the election, dismissing Conservative leader Pierre Poilievre as “stupid” for keeping his distance from the White House.
Public exchanges between the two leaders have been downright chummy, with Trump jokingly floating the idea of “the merger of Canada and the United States” during Carney’s recent White House visit. Carney, for his part, has returned the warmth, laughing off Trump’s playful jabs about titles at a recent peace summit.
But not everyone’s laughing—Poilievre, who lost big in April, slammed Carney’s tariff rollback as a gift to China. “Mark Carney breaks his promise to tariff Chinese steel and rewards Beijing,” he posted on social media Monday (as reported by Reuters). Is this a fair critique, or just sour grapes from the sidelines?
Meanwhile, Carney’s relationship with China remains cordial, highlighted by a September meeting with Premier Li Qiang at the United Nations General Assembly. Critics might argue that this softness undercuts Canadian workers facing stiff competition from Chinese imports.
On the U.S. front, whispers of a broader trade deal are gaining traction, with The Globe and Mail reporting a potential agreement on steel, aluminum, and energy by next week’s APEC summit.
Anonymous sources suggest it could ease the pain for Canada’s battered metals industry, though autos and softwood lumber—major exports—wouldn’t be included.
Carney himself hinted at progress on Tuesday, though he cautioned reporters not to “overplay it.” Any deal might come with strings attached, like quotas on Canadian imports to shield American steelmakers, per those same sources. It’s a compromise that could leave some north of the border grumbling.
So, what’s the takeaway from Carney’s tariff U-turn? This move might stabilize trade ties with the U.S., but it risks looking like a surrender of the aggressive stance he once championed against Trump’s policies.