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Canada Says Most Tariffs on US Remain, Contradicting Report

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Canada鈥檚 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 鈥渢emporarily and publicly paused tariffs鈥 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鈥檚 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 鈥渘early zero鈥 increase in Canada鈥檚 tariff rate against the U.S.
More of the same falsehoods.
To retaliate against U.S. tariffs, Canada launched largest-ever response 鈥 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. 鈥 Fran莽ois-Philippe Champagne (FPC) 馃嚚馃嚘 (@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鈥檚 countertariffs were designed to 鈥渃ause maximum pain鈥 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 鈥 including cars and trucks 鈥 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.
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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 鈥減erformance-based remission.鈥 The strategy was to give the companies an incentive to keep their Canadian operations despite U.S. tariffs.
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