The federal government removed more counter-tariffs on American goods than initially announced, according to an order-in-council. 

Last month's notice indicates that, except for steel, aluminum, and auto industries, all Canadian retaliatory tariffs have been removed, contradicting the prime minister's previous statements.

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Prime Minister Mark Carney pledged in August to remove counter-tariffs on U.S. goods "specifically covered under CUSMA," matching U.S. President Donald Trump's 35% tariffs on Canadian goods not covered by the free trade agreement.

The official order shows that Canada's counter-tariffs are not reciprocal, as products non-compliant with CUSMA do not face them. That contradicts prior framing from the federal government.

PM Carney announces Canada will drop its retaliatory tariffs against the United States.

Starting next month, Canada will "match the United States" and remove tariffs "on US goods specifically covered" under the existing USMCA trade deal, Carney says. pic.twitter.com/KIGdUBfK4i

— Rebel News (@RebelNewsOnline) August 22, 2025

On August 22, Canada announced it would lift its reciprocal tariffs on USMCA-compliant U.S. goods (oranges, alcohol, clothing, shoes, cosmetics) effective September 1, reversing a stance held since March.

However, seven days later, the order-in-council revealed a more lenient approach.

While Canada has reduced its retaliatory tariffs, the White House is increasing import tariffs, including a 100% levy on branded drugs from manufacturers without U.S. plants and a 25% tax on heavy-duty trucks.

Trump announced new import tariffs Thursday, effective October 1. These include a 50% levy on kitchen cabinets and bathroom vanities, and a 30% tariff on upholstered furniture. It is unclear if these are additional to existing tariffs.

Carney’s tariff bait-and-switch exposed: elbows up or down?

Liberal Prime Minister Mark Carney has been caught in a blatant bait-and-switch, abandoning his campaign promise of an “elbows up” stance against U.S. tariffs just days before Canadians went to the polls on April 28,… pic.twitter.com/7r4SR2g32n

— Rebel News (@RebelNewsOnline) May 21, 2025

A spokesperson for Finance Minister François-Philippe Champagne told CBC the government's primary goal is advancing trade talks with the United States.

Their statement emphasized negotiating "a good deal that protects Canadian workers and industries, advances Canada's economic priorities and puts our industrial might to good use."

"This has required providing and adapting varying trade mechanisms to better support Canadians in response to shifting trade patterns."

Conservative Leader Pierre Poilievre criticized the government's trade approach, accusing the prime minister of making "generous concessions" to the U.S. without reciprocity. He also mocked Carney's "elbows up" slogan, noting the disappearance of so called tough trade talks.

Carney denied his "elbows up" campaign ended with the August announcement, despite quietly reversing most measures during the snap election.

Carney defends dropping retaliatory tariffs on the US, saying Canada already has the best trade deal.

Likening it to a hockey game, he says there's times when you "go hard in the corners with your elbows up" and times "where you want to put the puck in the net." pic.twitter.com/wzePXSOl4k

— Rebel News (@RebelNewsOnline) August 22, 2025

The Prime Minister initially argued that Canada's counter-tariffs protected workers and aided negotiations. Now he said Ottawa must reinforce USMCA and form a new trade and security alliance with the U.S. to maintain this advantage, ahead of next year's review.

“We have the best deal of anyone in the world right now,” Carney claimed on August 22. 

Canada and China were the only nations to retaliate against U.S. tariffs, according to the Epoch Times. Ottawa imposed three rounds of counter-tariffs on almost $100 billion in U.S. goods.

Carney, seeking to mend relations, previously called Trump a "transformational president" and anticipated cooperation on fentanyl and trade.

He admitted to yielding no gains after a failed White House meeting on May 6, G7 Summit in Kananaskis, and scrapping the Digital Services Tax.