Canada Maintains Most 25% Retaliatory Tariffs on US Goods

Canada’s Finance Minister Francois-Philippe Champagne confirmed that approximately 70% of retaliatory tariffs imposed on U.S. goods remain active, covering about C$42 billion (US$30.1 billion) worth of imports. This response challenges reports from Oxford Economics suggesting that recent exemptions have effectively reduced Canada’s tariff rate against the U.S. to nearly zero. The exemptions, which include products related to health, public safety, and certain manufacturing sectors, were introduced to ease economic harm and allow Canadian companies time to adjust their supply chains. Opposition leaders criticized the government for allegedly not being transparent about the true extent of tariff relief, but Champagne emphasized the tariffs were calibrated to respond to U.S. measures while protecting Canadian interests. The tariffs originated as a response to U.S. President Donald Trump’s levies on Canadian products, including steel, aluminum, and vehicles, despite the existing North American trade agreement. Canada’s counter-tariffs aim to exert economic pressure on the U.S. while balancing domestic economic concerns.