Washington
Political standing of Canada: none
Canada is found dependent on the United States. It repeals its own tax on demand, returns its own counter-tariffs and bears the highest tariff the law of the United States allows.
Grounds
Canada withdrew its own law on the demand of a foreign head of state.
A tax of 3 per cent on digital services revenue of large firms. On Friday 27 June 2025 the President of the United States ended trade talks with Canada over it. On 29 June 2025 Canada withdrew it, before the first payments fell due.
Canada refunded the greater part of its own retaliation.
Counter-tariffs charged from March 2025 to 17 April 2026: C$9.7 billion. Remitted to importers by order: C$5.5 billion.
Canada exempted its own retaliation before it took effect.
Counter-tariffs on 629 tariff lines of United States origin from 8 September 2026. One third of them already under remission orders; for steel and aluminium, more than 60 per cent.
Canada bears the maximum tariff the law of the United States permits.
Section 338 lay unused for 96 years. The proclamation sets 50 per cent, the highest rate the section allows, on 874 tariff lines, about US$20 billion of Canadian exports, from 22 August 2026, and recites that the section authorizes their exclusion from the United States.
Canada acted on the trade policy of a foreign state; its own producers bore the cost.
The United States set 100 per cent on electric vehicles from China in May 2024; Canada imposed the same 100 per cent in 2024. China imposed 75.8 per cent on Canadian canola seed from 14 August 2025. The canola market in China: almost C$5 billion.