AI minister insists there’s ‘zero capitulation’ in U.S. trade talks after Canada drops some counter-tariffs

Artificial Intelligence and Digital Innovation Minister Evan Solomon says Canada is trying to match the Trump administration’s tariffs on Canadian goods.

Artificial Intelligence and Digital Innovation Minister Evan Solomon says Canada’s decision to remove the bulk of its counter-tariffs on U.S. goods — amid the protracted trade war between the two countries — was not a capitulation.

Solomon’s comments come less than two weeks after Prime Minister Mark Carney announced Canada will be dropping many of its counter-measures by exempting goods covered by the Canada-U.S.-Mexico Agreement (CUSMA).

“First of all, there’s no capitulation,” Solomon said in an interview on CTV Power Play with Vassy Kapelos on Tuesday, when asked if there’s a point at which Canada will walk away from negotiations entirely, rather than make further concessions. “Let’s be clear, zero, never, never. That’s not happening.”

“We have had counter-tariffs on steel and aluminum, but we’re trying to match exactly what the Americans have done,” Solomon added. “But look, this is an important trading relationship. Most of our goods are traded freely, and we are going to make sure that we establish fair ground rules with the U.S.”

In addition to the counter-tariff carve-out, Canada has made other concessions, including scrapping the controversial digital services tax (DST) to which U.S. President Donald Trump was vehemently opposed.

Canada has also made policy decisions in response to Trump’s concerns, namely by introducing a $1.3-billion border plan, naming a “fentanyl czar” and by speeding up the date by which it’ll meet its defence-spending commitments to NATO.

Canada and the U.S. have been in an ongoing trade war since February, when Trump imposed sweeping tariffs on Canadian goods, claiming they were related to border security. Those were later scaled back to apply only to goods not covered by CUSMA.

But, in the months since, the U.S. president has stacked additional sectoral tariffs on steel and aluminum, copper and autos.

Speaking to reporters on Aug. 22, Carney insisted the move to drop some counter-tariffs is meant to “match” U.S. levies, by implementing a carve-out for goods covered by CUSMA. But, while the American administration has imposed 50 per cent tariffs on steel and aluminum, Canada’s counter-tariffs on those industries remain at 25 per cent.

“Canadians appreciate this is complicated,” Solomon said. “Canadians appreciate that this is ongoing, but they also appreciate that Canadians are not going to settle for a bad deal. They’re going to g et a good deal, and that’s what these negotiations are all about.”

Solomon’s comments are in line with those made by Carney and Canada-U.S. Trade Minister Dominic LeBlanc in recent weeks, that the federal government in its negotiations is prioritizing getting the “best deal” over a timely one.

“These are complicated negotiations, and we’re making sure that Canada and the U.S. have a matched playing field in terms of tariffs to allow for these negotiations to stay on track,” Solomon insisted, when pressed on whether Canadians might perceive the move to scrap most counter-tariffs as “elbows down,” and in opposition of the posture the Liberals campaigned on.

“Getting these tariffs on steel, auto, aluminum and other things negotiated is what is going on right now,” he added. “I don’t want to simplify it with elbows up or elbows down. It’s a complicated negotiation. And the good news is it’s going on.”

Solomon is also the minister responsible for the Federal Economic Development Agency for Southern Ontario.

Old AI legislation will be partially reintroduced

Solomon — who is Canada’s first AI minister in the newly created portfolio — said some legislation from the previous Liberal government aimed at protecting Canadians’ digital privacy may be reintroduced.

Bill C-27, dubbed the Digital Charter Implementation Act, was introduced in 2022 but never made it to second reading in the House of Commons.

Solomon said while the prime minister hasn’t yet finalized the legislative agenda for the fall, part of the plan is likely to include reintroducing the portions of C-27 related to digital data privacy.

“That will build trust in order for them to adopt AI and use those tools, absolutely key,” Solomon said.

“We need the right legislation on privacy and data, and then we are going to be, obviously, working closely with the Canadian AI Safety Institute and other experts … to make sure that Canadians are protected from any downside risk of this,” he also said. “On the other hand, we’ve got to embrace building the economy of the future on one hand, and do it safely and protect Canadians on the other. Those things co-exist, and that’s part of my mission.”

Solomon made the comments in response to a question from Kapelos around any legislative framework the government may consider to mitigate the risks of artificial intelligence, which several pioneers in the field have warned could pose an existential threat.

You can watch Evan Solomon’s full interview on CTV Power Play with Vassy Kapelos at 5 p.m. ET.