Canada Eases Counter-Tariffs on U.S., Promises Lower Prices for Consumers

Most of Canada’s retaliatory tariffs against the United States were lifted on Monday, following Prime Minister Mark Carney’s earlier announcement that trade barriers would ease under the Canada-U.S.-Mexico (CUSMA) framework. The decision comes after Carney and U.S. President Donald Trump agreed to push forward stalled trade talks.
Canada’s counter-tariffs had been imposed earlier this year in response to sweeping U.S. duties on Canadian goods. While tariffs on key sectors such as autos, steel, and aluminum remain, Carney said the move restores free trade for the majority of goods and preserves Canada’s competitive edge. Trump welcomed the decision, calling Carney a “good person” and noting further talks are underway.
The easing of tariffs is expected to affect Canadian households directly. Food experts predict grocery prices could drop, particularly for perishable imports such as Florida orange juice. Processed goods with longer shelf life, including sugar-based products and pickles, may see slower price adjustments as tariffed inventories clear from stores. Retailers like Loblaw confirmed that price reductions should begin appearing in the coming days.
The response within Canada has been mixed. Labour unions criticized the decision, warning it undermines workers and exposes the country to further U.S. pressure. Business groups, however, welcomed the development, saying it clears the way for renewed cooperation and trade growth. Industry leaders stressed the importance of preparing for CUSMA’s 2026 review to ensure long-term stability and predictability in North American trade.