Five things to know about Canada's counter-tariffs on the U.S.
OTTAWA – After U.S. President Donald Trump boosted steel and aluminum tariffs to 50 per cent, some industry groups and the Official Opposition have called on the federal government to retaliate in kind.
Here's a look at the counter-tariffs Canada has imposed so far.
1. What do the counter-tariffs cover?
The Canadian government has imposed retaliatory tariffs on U.S. goods three times since Trump's trade war began, aimed at what it says are imports worth $95.4 billion worth.
On March 4 — after the U.S. imposed 25 per cent tariffs on all Canadian goods, along with 10 per cent on energy products — then-prime minister Justin Trudeau announced the first raft of counter-tariffs on $30 billion worth of U.S. goods.
Those 25 per cent tariffs target things like orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol.
On March 12, the U.S. added a 25 per cent tariff on all steel and aluminum products, which was stacked on top of existing levies on Canadian goods.
Canada's response a day later was 25 per cent reciprocal tariffs on another $29.8 billion of U.S. goods, including steel and aluminum, tools, computers and sport equipment.
On April 9, in response to another round of U.S. tariffs — this time targeting the Canadian auto industry — the federal government imposed 25 per cent duties on 'non-CUSMA compliant vehicles' from the U.S. and 25 per cent tariffs on the content of CUSMA-compliant vehicles from the U.S.
The government says this covers $35.6 billion in auto imports from the United States.
2. What are the exemptions?
On April 15, in the midst of the federal election campaign, Prime Minister Mark Carney announced that the government was exempting some products from tariffs for six months to help Canadian businesses adapt.
The tariff holiday covers specific categories: goods used in Canadian manufacturing, processing and food and beverage packaging, as well as imports used to support public health, health care, public safety and national security objectives.
And when it comes to vehicle tariffs, the government said 'companies that produce autos in Canada have been granted remission to ensure the ongoing viability of their Canadian operations,' but that it is 'contingent on them maintaining production levels in Canada and on following through with planned investments.'
3. Does this mean all counter-tariffs have been dropped?
On Wednesday, Opposition House leader Andrew Scheer said the government 'secretly dropped those tariffs to zero during the campaign.'
This line has been repeated often by the Conservatives since the release of a report by Oxford Economics on May 13, which said Canada paused counter-tariffs for six months 'on nearly all U.S. goods imports.' The report said it estimated the exemptions would cover about 97 per cent of the tariffs.
The government said that's not true.
A spokesperson for Industry Minister Mélanie Joly said the exemptions apply to 30 per cent of the $60 billion worth of goods that are subject to tariffs — a figure that doesn't include the auto tariffs.
William Pellerin, a partner in international trade at McMillan LLP, said the exemption is not nearly as broad as what's been reported.
'I think that report caused a lot of consternation within the trading community and the legal community. It is absolutely, certainly not zero impact on our clients,' he said, noting many of them are paying millions of dollars in duties already.
4. Where does all this leave Canadian businesses?
Pellerin said there's a lot of confusion out there about what's covered by the exemptions.
The Canada Border Services Agency has issued a customs notice explaining how to interpret the exemptions, 'but in many circumstances it's simply not obvious at all,' Pellerin said.
As an example, he said he has clients who have been told by the CBSA that imported agricultural equipment is not exempt.
'We actually think that that's legally incorrect, that they've poorly interpreted the order-in-council,' he said.
That's the kind of thing his firm is trying to sort out while it waits and hopes for a long-term resolution.
'Whatever actions need to be taken to get back to a tariff-free world (are) absolutely necessary,' he said.
5. How much tariff revenue has the government collected and where is it going?
Conservative MPs have been asking this question in the House of Commons all week.
On Tuesday, Conservative MP Dan Albas charged that 'Liberals promised $20 billion in elbows-up U.S. tariffs, but later dropped them with no regard to affected Canadian workers or fiscal impacts.'
Prime Minister Carney responded to say that tariffs are still in effect and $1.7 billion has been collected so far.
The federal government's latest fiscal monitor showed Canada collected an extra $617 million in import duties in March, as compared to the year before. Figures for April and May have not yet been published.
During the election campaign, the Liberals and the Conservatives both estimated Canada would collect $20 billion in tariff revenue this fiscal year.
Monday Mornings
The latest local business news and a lookahead to the coming week.
In its election platform, the Liberal party pledged that 'every dollar raised from these tariffs will support Canadian workers and businesses affected by the trade war.'
Officials at the Finance Department said in a statement that the money is going into the consolidated revenue fund and being used 'to support those hardest hit by this economic disruption.'
The statement said that is happening through programs like employment insurance work-sharing, deferral of corporate income tax payments and GST/HST remittances, or by offering liquidity support through Export Development Canada, Farm Credit Canada, Business Development Canada and the Large Enterprise Tariff Loan Facility.
— With files from Craig Lord
This report by The Canadian Press was first published June 5, 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Toronto Star
28 minutes ago
- Toronto Star
Mahmoud Khalil vows to continue protesting Israel's war in Gaza after coming back home
CONCORD, N.H. (AP) — A Palestinian activist who was detained for more than three months pushed his infant son's stroller with one hand and pumped his fist in the air with the other as supporters welcomed him home Saturday. Mahmoud Khalil greeted friends and spoke briefly to reporters Saturday at New Jersey's Newark International Airport a day after leaving a federal immigration facility in Louisiana. A former Columbia University graduate student and symbol of President Donald Trump 's clampdown on campus protests, he vowed to continue protesting Israel's war in Gaza.
Winnipeg Free Press
33 minutes ago
- Winnipeg Free Press
Mahmoud Khalil vows to continue protesting Israel's war in Gaza after coming back home
CONCORD, N.H. (AP) — A Palestinian activist who was detained for more than three months pushed his infant son's stroller with one hand and pumped his fist in the air with the other as supporters welcomed him home Saturday. Mahmoud Khalil greeted friends and spoke briefly to reporters Saturday at New Jersey's Newark International Airport a day after leaving a federal immigration facility in Louisiana. A former Columbia University graduate student and symbol of President Donald Trump 's clampdown on campus protests, he vowed to continue protesting Israel's war in Gaza. 'The U.S. government is funding this genocide, and Columbia University is investing in this genocide,' he said. 'This is why I will continue to protest with everyone of you. Not only if they threaten me with detention. Even if they would kill me, I would still speak up for Palestine.' Khalil, a legal U.S. resident whose wife gave birth during his 104 days of detention, said he also will speak up for the immigrants he left behind in the detention center. 'Whether you are a citizen, an immigrant, anyone in this land, you're not illegal. That doesn't make you less of a human,' he said. The 30-year-old international affairs student wasn't accused of breaking any laws during the protests at Columbia. However, the government has said noncitizens who participate in such demonstrations should be expelled from the U.S. for expressing views the administration considers to be antisemitic and 'pro-Hamas,' referring to the Palestinian militant group that attacked Israel on Oct. 7, 2023. Khalil was released after U.S. District Judge Michael Farbiarz said it would be 'highly, highly unusual' for the government to continue detaining a legal U.S. resident who was unlikely to flee and hadn't been accused of any violence. The government filed notice Friday evening that it is appealing Khalil's release. Joining Khalil at the airport, U.S. Rep. Alexandria Ocasio-Cortez of New York said his detention violated the First Amendment and was 'an affront to every American.' 'He has been accused, baselessly, of horrific allegations simply because the Trump administration and our overall establishment disagrees with his political speech,' she said. 'The Trump administration knows that they are waging a losing legal battle,' Ocasio-Cortez added. 'They are violating the law, and they know that they are violating the law.'
Edmonton Journal
an hour ago
- Edmonton Journal
Opinion: Is a land swap a win-win solution to the Canada-U.S. crisis?
Article content Americans would welcome these provinces and territories — and their agricultural, mineral and energy resources — with open arms (and would pay for those resources with U.S. dollars). Like most out-of-the-box ideas, this may sound crazy at first glance. And, to be sure, it would face major legal and political hurdles in both countries. But in the end, it would put Canada in a stronger position economically, enable the U.S. to counter Russian ambitions in the Arctic and become more energy-independent, and allow West Coast progressives to unite under a common flag — and Alberta conservatives to do the same. For what it's worth, I've travelled extensively in Canada, from Vancouver Island to Newfoundland, and I love its people and its distinctive culture. (I was a big Canadiens fan as a kid and have followed Canadian hockey and hockey players ever since. I never saw such passionate fans at a sporting event until I finally attended an NHL game in Ottawa back in the 1990s). I want to see Canada thrive, but I fear that it's being torn apart by unthinking attitudes of the so-called elites — something that American conservatives understand and sympathize with. I'm hoping that a cross-border realignment will bring out the best in your country as well as ours, and bring greater prosperity and cultural harmony to both countries. It's not about Trump, it's about common sense and political reality. What have we got to lose?
