Ottawa – Canada’s move to release several anti -anti -counter tariffs on American goods may lead to low prices for consumers, but union leaders are worried that it may reduce the bargaining position of this country in ongoing trade talks.
Prime Minister Mark Carney on Friday announced that the Canada Canada-United States would give up some anti-repayment tariffs on US products to match American tariff exemption for goods covered under the Canadian Canada-Maxico agreement.
Carney said that his decision at a news conference would be effective on September 1, 2025.
Colin Mang, Assistant Professor of Economics at McMaster University, stated that the announcement is the “big winners” consumers and retailers who import American goods, such as Loblavs, Metro and Sobies.
“For consumers, this is definitely going to be a positive because by removing these tariffs, the notice you are starting to notice is that prices come down at the grocery store again for some things targeted like orange juices,” Mang said.
Mang said that consumers will also see a fall in prices on goods like American spices, nuts and cooked goods.
“A specific family often does not consume huge amounts of those people, so they cannot notice a significant value fall, but it would be meaningful over time,” Mang said.
Mang said that relief consumers would feel that while shopping would depend on the options made by retailers, many of which increased prices anywhere between 10 to 15 percent or more when they are in place of tariffs.
“It will be interesting to see how retail vendors react with tariffs, if they leave prices, they are like and simply soaked additional revenue, or if the retailers have decided to return to some or all tariffs,” Mang said.
“I hope they will decide to return the savings on consumers, but you never know, once the prices rise in prices, it is difficult to see them down because retail vendors realize that people are ready to pay.”
Carney said on Friday that Canada and the US have re -established free trade for most goods. He said that Canada would maintain tariffs on steel, aluminum and auto as it works with America to solve issues.
The Canadian Federation of Independent Business celebrated the decision to leave some anti -retaliation tariffs and said that the business talks continue to take some pressure to small canadian businesses.
For advocacy, CFIB Executive Vice President Corinne Pohlmann said that recent research by the organization found that two highest tariffs affecting members were on aluminum and steel, followed by the Canadian counter tariffs followed by very closely.
He said that more than half of the members said that the counter tariffs were impacting their business and those who are in line with Kusma should have a positive effect.
Steel, aluminum or auto sector people are still going to feel it, “he said, although it would be beneficial for many small companies that are importing products.
Pohalman said that businesses paying tariffs for several months would require time to “recover”. He argued that the funds collected by the federal government through counter tariffs should be returned to businesses so that they can come back or pive back to other markets.
He said, “We hope that it can make a dent in some issues that are facing something,” he said, some business tariffs resulting in absorbing prices or prices increase. “We can see that some prices decrease, we can simply see businesses being able to breathe a little more easily.”
The unions are feeling less positive about the government’s decision to leave anti -counter tariffs.
Uniphore said in a statement that the step “weakens Canadian workers and weakens the Canadian bargaining position in a growing business war.”
“Donald Trump’s attacks on Canada’s auto, steel, aluminum and forestry sectors are killing workers in real time,” said Lana Payne, the national president of Uniphore. “Walking back to the counter-tariff is not an olive branch-it is an open invitation to more American aggression. It sends incorrect signal in the worst possible moment.”
Payne said that Canada should not leave the counter-tariff until the US leaves all its inappropriate tariffs “.
“Supporting with concessions is a betrayal of workers who are paying the price,” he said.
Chris Roberts, National Director of the Department of Social and Economic Policy of Canadian Labor Congress, said that the Canadian government needs to “stand up” and instead of fighting them as “new normal” instead of fighting to remove tariffs.
“The result is that investment, production and jobs are going to flow from Canada to the United States, and its strategic industries are going to have disastrous consequences,” Roberts said. “We have seen the return of Mark Carney who were elected to maintain our elbow and oppose the United States pressure.”
Roberts said that the government needs to take immediate measures to reduce the economic pain felt by Canadian employers, workers and consumers.
Roberts said, “I am being described here today, I think he is one who is not going to serve Canadian economy and industries and workers in a long time.”
This report of Canadian Press was first published on 22 August 2025.
Catherine Morrison, Canadian Press