Canada Maintains Majority of Tariffs on U.S. Goods, Finance Minister Says
Canada’s Finance Minister Francois-Philippe Champagne has disputed claims that the country has rolled back most of its tariffs on U.S. goods, stating that 70% of the countermeasures remain in effect.
In a social media post Saturday, Champagne said the government continues to impose 25% retaliatory tariffs on roughly C$42 billion (US$30 billion) worth of U.S. exports—excluding vehicles. He clarified that certain exemptions were made for public health, safety, and essential manufacturing needs, but these are temporary and limited.
“The government temporarily and publicly paused tariffs on some items for health and public safety reasons,” Champagne wrote.
His remarks challenge a May 13 report from Oxford Economics, in which economists Tony Stillo and Michael Davenport claimed recent exemptions rendered Canada’s effective tariff rate on the U.S. “nearly zero.” The report prompted criticism from opposition parties, who accused Prime Minister Mark Carney of lacking transparency.
Carney, who won the April 28 election leading the Liberal Party, had campaigned on his ability to manage the ongoing trade conflict, emphasizing that the government’s countermeasures were aimed at inflicting “maximum pain” on the U.S.
In response to tariffs imposed by U.S. President Donald Trump on Canadian and Mexican goods—including vehicles—Canada enacted its own 25% tariffs on U.S.-made consumer goods, steel, aluminum, and later, cars.
However, on April 15, the Canadian government announced short-term exemptions for certain imports used in manufacturing, food and drink packaging, and critical infrastructure. Companies in Canada can import some goods tariff-free for six months. Vehicle manufacturers such as General Motors and Honda can also bring in select models under a “performance-based remission” system to encourage continued operations in Canada.
