Photo: The Canadian Press
Foreign Affairs Minister Francois-Philippe Champagne

The United States is standing down in its tariff dispute with Canada and lifting a 10% levy on aluminum imported from north of the border.

The office of the U.S. Trade Representative says it will lift the tariffs retroactive to Sept. 1 because it expects Canadian exports to “normalize” over the remainder of the year.

In a statement, the USTR says it will continue to monitor trade in aluminum and reimpose the tariff if levels spike unexpectedly.

The sudden about-face comes just hours before the federal Liberal government was expected to announce a suite of countermeasures in retaliation for the tariffs.

The government had already issued a list of possible products on the target list, including beverage cans, washing machines and golf clubs.

The U.S. imposed the tariffs last month at the request of two American manufacturers, prompting an outcry from Canadian producers.