News today was that Prime Minister Mark Carney withdrew many Canadian retaliatory tariffs on American good, although some remain. (One report indicated that the withdrawal was for goods covered by CUSMA/USMCA.) This news angered many Canadians, as it is an apparent reversal of the “elbows up” message of the election campaign.
Although I am not a fan of the move, the reality is that the most effective retaliation was by provincial governments (cutting off American liquor purchases in provincial distribution networks) and consumer boycotts, such as tourism and food products. (Admittedly, the spectacle of troops patrolling the national capital and similar moves are not helping America attract tourists.) The strategy quite openly is to lay low and let other countries be the punching bag of the administration. The passivity of other countries (the United Kingdom standing out) also makes taking a stand on principle more awkward.
Given that the trilateral trade agreement is due for a renegotiation soon also creates an incentive to not completely burn down the tattered relationship. Realistically, Canada needs to time to pivot away from North/South trade, and retreats are probably necessary along the way.
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