Canada, like Mexico, sends around 75% of its goods exports to the United States.
The prime minister said Monday the priority for the two-day retreat will be how to address a possible second wave in the fall rather than dealing with plans to rebuild the economy.
In Tuesday's announcement that the 10% tariff would be dropped, retroactive to 1 September, the office of the US Trade Representative said it expected imports over the rest of 2020 to decline by 50% from the monthly average in the first seven months of the year.
"We will be taking action to counter the unjust tariffs put on Canadian aluminum by the United States", Trudeau told reporters before a Cabinet retreat in Ottawa. "This is the USA deciding to drop the tariffs" before a scheduled 3 p.m. news conference by Deputy Prime Minister Chrystia Freeland which was set to unveil Canada's list of American products targeted for tariffs.
"We're glad the USA lifted tariffs - that's a victory for Canada and the U.S".
Freeland rejected suggestions that Canada has agreed to US -imposed quotas, saying this is not a negotiated deal between the two countries.
In initially signaling a retaliatory response was coming, Freeland said it was her hope that the US administration would realize the trade action would negatively impact the aluminum industry on both sides of the border and backtrack on their decision.
Canada's foreign affairs minister says the federal government is still trying to cool its dispute with the United States over aluminum exports, but remains poised to retaliate if necessary.
The Canadian government has been looking at more than 60 USA aluminum-containing products that could face higher tariffs, planning dollar-for-dollar equivalent tariffs worth C$3.6 billion ($2.7 billion) against the U.S. The Trump administration later exempted certain countries, including Canada, from the levies, which were also controversial within the US.
Similar tariffs were imposed in 2018, but were removed with the understanding that there would not be a significant surge in imports of these products.
The U.S. imposed the tariffs last month at the request of two American manufacturers, prompting an outcry from Canadian producers. The government remains prepared to retaliate should the USA decide to act on its tariff threat, she added.
As of Monday, there were 137,249 confirmed cases in Canada. "We will always be there to defend Canadian workers, defend our aluminum sector".