Canada Says Most Tariffs on US Remain, Contradicting Report
[Stay on top of transportation news: .]
Canada’s finance minister said the government kept 25% retaliatory tariffs on tens of billions of dollars in U.S. goods, disputing a report from a research firm that suggested it had paused the vast majority of those levies.
Francois-Philippe Champagne said 70% of the countertariffs implemented by Canada in March are still in place, according to a social media post May 17. The government “temporarily and publicly paused tariffs” on some items for health and public safety reasons, he said.
The 70% figure implies that Canada continues to charge tariffs on about C$42 billion ($30.1 billion) of U.S. exports to Canada, excluding automobiles.
Champagne’s post is pushing back on a May 13 report from Oxford Economics. The note from economists Tony Stillo and Michael Davenport said recent government exemptions to tariffs covered so many categories of products that the result was a “nearly zero” increase in Canada’s tariff rate against the U.S.
More of the same falsehoods.
To retaliate against U.S. tariffs, Canada launched largest-ever response — including $60B of tariffs on end-use goods. 70% of those tariffs are still in place.
We temporarily and publicly paused tariffs on goods for health & public safety reasons. — François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne)
After the report, opposition politicians accused Prime Minister Mark Carney of not being transparent about his tariff strategy. Carney campaigned in the recent election as the best candidate to handle the trade war, and said numerous times the government’s countertariffs were designed to “cause maximum pain” in the U.S. His Liberal Party won the April 28 vote.
U.S. President Donald Trump has imposed tariffs against an array of Canadian and Mexican products — including cars and trucks — despite the trade deal that exists between the three countries. Canada responded by first putting 25% countertariffs on a list of U.S.-made consumer goods, steel and aluminum, then adding tariffs on U.S.-made vehicles.
Want more news? Listen to today's daily briefing above or go here for more info
But on April 15, Champagne announced a series of short-term exemptions. Companies in Canada are allowed to import items used in manufacturing, processing and food and beverage packaging for six months, without paying the tariffs. Items that are needed for public health, health care, public safety, and national security are also exempt during that time.
Automakers that manufacture in Canada, such as General Motors Co. and Honda Motor Co., are allowed to bring in some vehicles tariff-free under a process called “performance-based remission.” The strategy was to give the companies an incentive to keep their Canadian operations despite U.S. tariffs.
