Canada Says US Is Unlikely to Lift Tariffs Amid Trade Tensions

Published: 25 February 2026 . The English Chronicle Desk. The English Chronicle Online

Canada’s finance minister has signalled that Washington is unlikely to remove tariffs on Canadian goods any time soon, even as Ottawa seeks to resolve persistent trade friction with its largest trading partner. In comments to reporters in Ottawa, François-Philippe Champagne acknowledged that the United States views access to its market as something other countries must pay for, suggesting Canadian hopes for a tariff-free trade relationship may be unrealistic under the current US administration.

Canada and the United States have been at odds over tariffs on several key sectors, including steel, aluminium and softwood lumber, as well as broader disagreements about agricultural market access. While Canada benefits from USMCA protections that exempt some trade from levies, other Canadian exports still face steeper duties, and Champagne’s remarks indicate that removal of those tariffs is not expected in the near term. The minister said Ottawa recognises that countries paying the tariff “price to access the American market” must consider market openness in return — a stance reflecting the current US trade policy’s hard line on levies.

The comments come against the backdrop of broader shifts in trade policy. The US Supreme Court recently invalidated a significant portion of the Trump administration’s previous tariff regime — but the US Trade Representative made clear that new tariffs under a different statute remain in force and that the overall approach to trade restrictions has not softened. This stance has unsettled international partners, who fear ongoing tariffs even as legal frameworks evolve.

Canada’s government has responded by emphasising efforts to diversify export markets and reduce reliance on the US economy, including plans to boost trade ties with countries in Asia and Europe. Prime Minister Mark Carney is leading diplomatic outreach to major partners in India, Australia and Japan to open new avenues for Canadian goods beyond the traditional North American market.

Economists and policymakers say the persistence of tariffs complicates negotiations on the Canada-United States-Mexico Agreement (CUSMA) review, scheduled for later in 2026, as both sides attempt to balance national interests with economic integration. For now, Ottawa appears to be bracing for a prolonged period in which tariff disputes continue to shape North American trade dynamics.

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