The United States has suddenly called a tariff truce with Canada, lifting its 10 per cent aluminum levy Tuesday just hours before Ottawa was to unleash a suite of countermeasures.

The tariffs on Canadian aluminum will be lifted retroactive to Sept. 1 because Canadian exports are expected to “normalize” over the remainder of the year, the U.S. trade representative’s office said in a statement.

Abigail Bimman explains why a trade threat still looms.

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