US-Canada tariffs may not be 'totally removed'

But US ambassador suggested tensions can be eased.

MAY 12, 2025

By Bloomberg

by Christine Dobby

Some US tariffs on Canadian imports may remain in place even as the relationship between the two countries improves, Peter Hoekstra, the US ambassador to Canada, said.

“I’m not sure they’ll be totally removed,” Hoekstra said in an interview on Global TV’s The West Block Sunday when asked about the 25% tariff US President Donald Trump placed on most Canadian goods in March, citing concerns about fentanyl entering the US.

While less than 1% of the fentanyl seized by US Customs and Border Protection comes via the US-Canada border according to CBP data, there is some evidence of fentanyl production in the country.

Hoekstra’s remarks come on the heels of a new trade agreement between the US and UK, which gave the UK limited relief on autos, steel and aluminum duties. The deal maintained a 10% baseline tariff on UK imports.

Hoekstra said Canada and the US can move past the tensions of recent months, during which Trump repeatedly called for Canada to become the 51st state and mocked former Prime Minister Justin Trudeau by calling him “Governor Trudeau.”

Trump struck a more respectful tone with newly elected Prime Minister Mark Carney during their White House meeting last week.

“I think the president wants a very positive relationship,” said Hoekstra, who was confirmed as US envoy to Canada last month. “We have moved beyond the 51st state, at least as far as I’m concerned.”