Canada Says Most Tariffs on U.S. Goods Still in Place, Disagrees with Report
Canada’s finance minister says the government is still charging 25% tariffs on many U.S. products, even though a recent report claimed most of them had been paused.
Minister François-Philippe Champagne posted on social media that 70% of the counter-tariffs Canada put in place in March are still active. He said the government only paused some of them temporarily for health and safety reasons.
This means that Canada is still taxing about C$42 billion (about $30.1 billion USD) worth of goods from the U.S., not including cars.
Champagne’s message pushes back against a May 13 report from Oxford Economics. That report, written by economists Tony Stillo and Michael Davenport, said Canada’s recent exemptions covered so many products that they had almost no effect on U.S. trade.
After the report came out, some opposition politicians accused Prime Minister Mark Carney of not being honest about his plan. Carney, who won the April 28 election, had promised to take a tough stance in the trade war and said his tariffs were meant to “cause maximum pain” in the U.S.
The trade fight began after U.S. President Donald Trump added tariffs on several Canadian and Mexican products, including cars and trucks, even though the three countries have a trade deal. In response, Canada added 25% tariffs on U.S.-made consumer goods, steel, aluminum, and later, vehicles.
However, on April 15, Champagne announced short-term exemptions. Some Canadian companies can import items used in manufacturing, food packaging, and public health without paying tariffs—for six months. This includes goods needed for health care and public safety.
Automakers like General Motors and Honda can also bring in some vehicles without paying tariffs under a program that rewards companies for keeping jobs in Canada.
