“It’s a very strategic approach from a new prime minister to really say, ‘We’re not going to have a retaliation,’” Tony Stillo, Oxford’s director of Canada economics, said in an interview. “It’s a strategic play on the government’s part to not damage the Canadian economy.”
Retaliatory tariffs on some U.S. goods remain, including on food items such as orange juice, alcohol and coffee, as well as clothing and cosmetics.
Carney fought and won an election last month by convincing millions of Canadian voters that he was the best candidate to handle a trade war with the U.S., which buys about three-quarters of Canada’s exports.