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.
ARTICLE CONTINUES BELOW
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.
ARTICLE CONTINUES BELOW
ARTICLE CONTINUES BELOW
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.
ARTICLE CONTINUES BELOW
ARTICLE CONTINUES BELOW
'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.
ARTICLE CONTINUES BELOW
ARTICLE CONTINUES BELOW
'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.
ARTICLE CONTINUES BELOW
ARTICLE CONTINUES BELOW
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
CTV News
an hour ago
- CTV News
America's economy faces a potential war shock: Surging oil prices
The American economy faces the unwelcome prospect of reignited inflation after the United States launched strikes on three nuclear facilities in Iran. High oil and gas prices are a near certainty, experts say. The big question now: How long will the fossil fuels price spike last? Oil prices are expected to rise by about $5 per barrel when markets open on Sunday, according to experts. 'We are looking at $80 oil on the open,' said Andy Lipow of Lipow Oil Associates. U.S. oil hasn't closed above $80 a barrel since January and has largely hovered between $60 and $75 a barrel since August 2024. Relatively tame oil prices have lowered gas prices to below $3 a gallon in many parts of the country, a major source of price relief for inflation-weary consumers. It's unclear if any major spike in oil prices will be sustained for a long period. Oil prices have risen about 10% since Israel's surprise attack on June 13 and then fell on Friday after U.S. President Donald Trump announced a two-week deadline on whether to strike Iran. 'One shouldn't necessarily assume that just because the price of oil goes up, it's going to stay there. It doesn't,' said Joe Brusuelas, chief economist for the accounting firm RSM. The direction oil prices take is likely to depend on whether Iran's parliament decides to block the Strait of Hormuz, a key trade route that accounts for about 20% of the world's crude oil. On Sunday, Iran's Foreign Minister Abbas Araghchi said his country has 'a variety of options' when deciding how to respond to the U.S. attacks and a prominent adviser to Iran's supreme leader has already called for the closure of the Strait of Hormuz. Bob McNally, president of consulting firm Rapidan Energy Group and former energy adviser to President George W. Bush, said that should Iran cut off the world's oil supply by closing the strait it would risk more military force from the United States and its allies. Iran could also attack infrastructure in the Persian Gulf that treats and exports oil and gas. 'It's possible they will decide the only thing that can dissuade President Trump is the fear of an oil price spike,' he said. 'They have to actually create that fear.' Appearing Sunday on Fox News, Secretary of State Marco Rubio called on China to prevent Iran from closing the Strait of Hormuz, adding that closing it would do more damage to other economies than the U.S. economy. China buys a third of all oil that comes from the Persian Gulf, while the United States buys less than 3%. 'I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Straits of Hormuz for their oil,' Rubio said. Rubio added that closing the strait would hurt other countries' economies more than the U.S. economy. Meanwhile, American consumers may soon feel a price shock at the pump. 'It takes five days or so for stations to pass along the prices they see in one day. If oil markets do surge today and then tomorrow, it could start showing up at the pump in a matter of hours,' said Patrick De Haan, vice president of petroleum analysis at GasBuddy, a fuel tracking platform. According to Lipow, should the Strait of Hormuz be affected, the price of oil could rise to $100 a barrel, which would raise gas and diesel prices by about 75 cents per gallon from recent levels. Meanwhile, U.S. trade policies combined with the war with Iran 'strongly suggest inflation will be moving faster and higher over the next 90 days,' according to Brusuelas. Many mainstream economists argue that the low inflation of the spring represents a calm before the summer storm, when they expect prices to rise because of Trump's tariffs.
Toronto Sun
2 hours ago
- Toronto Sun
ELDER: Democrats bury heads in the sand as Trump tackles Iran crisis
President Donald Trump gestures as he boards Air Force One at Joint Base Andrews, Md., Friday, June 20, 2025. Photo by Manuel Balce Ceneta / AP Photo When it comes to criticizing President Donald Trump and refusing to give credit for virtually anything, it's full speed ahead for Democrat politicians. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account On the economy, Axios just reported: 'The stock market had been recently scraping new highs … The unemployment rate was 4.2%, and inflation was well-contained near the Fed's 2% target.' Gas prices are down, as is the retail price of eggs. Inflation, despite the tariffs, is at a four-year low. Wages are up. That southern border has become a non-issue for much of the media. The New York Post recently wrote, 'Border Patrol agents didn't release a single migrant into the U.S. last month — a staggering drop after the Biden administration allowed 62,000 illegal crossers in the country in May 2024. … Agents caught 8,725 migrants crossing illegally at the southern border last month. That's a 93% decrease from May 2024, when 117,905 were nabbed, according to internal data obtained by The Post .' Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Last April, then-Homeland Security secretary Alejandro Mayorkas testified before Congress, 'With the authorities and the funding that we have, (the border) is as secure as it can be.' Democrats attack Trump's 'Big Beautiful Bill' not only as a supposed danger to the so-called entitlements, but as an existential threat to the republic. House Minority Leader Hakeem Jeffries said, 'People will die if the (Republicans') tax scam ever becomes law.' On immigration, there is no shortage of Democrats whipping out the fascism card. About Trump's deportation policy, Rep. Alexandria Ocasio-Cortez (D-N.Y.) recently said, 'They are trying to end legal status in the United States.' But, where are the big Democrat voices on Iran, specifically on Israel military action and our country's support to prevent the No. 1 state sponsor of terror from acquiring a nuclear bomb? This advertisement has not loaded yet, but your article continues below. Former president Barack Obama, about the Trump administration, said days ago at a speech in Connecticut, 'If you follow regularly what is said by those who are in charge of the federal government right now, there is a weak commitment to what we understood — and not just my generation, at least since World War II — our understanding of how a liberal democracy is supposed to work.' But nothing about Iran. For years, Hillary Clinton and Obama said that a nuclear-armed Iran is unacceptable. Then-New York senator Clinton said: 'A nuclear-armed Iran is unacceptable, but it is not just unacceptable to Israel and to the United States. It must be unacceptable to the entire world, starting with the European governments and people.' This advertisement has not loaded yet, but your article continues below. Obama, in 2012, said: 'I think that the Israeli government recognizes that, as president of the United States, I don't bluff. I also don't, as a matter of sound policy, go around advertising exactly what our intentions are. But I think both the Iranian and the Israeli governments recognize that, when the United States says it is unacceptable for Iran to have a nuclear weapon, we mean what we say.' OK, Clinton and Obama, care to comment? Senate Minority Leader Chuck Schumer recently issued a statement opposing Iran's acquisition of a nuclear weapon, but did not mention Trump, let alone praise Trump's support for Israel or the way he is navigating this crisis. A big exception is Sen. John Fetterman (D-Pa.), who said, 'I really hope the president finally does bomb and destroy the Iranians.' He later wrote: 'To be perfectly clear — destroying the Iranian regime. Free the Iranian citizens from this cancerous, repressive, and authoritarian regime.' This advertisement has not loaded yet, but your article continues below. Also, Harold Ford Jr., Democrat Fox News contributor and former Tennessee member of the U.S. House, said: 'I give the president a lot of credit. … I was reminded of a Churchill saying — I no longer listen to what people say. I watch what they do because behaviour never lies. And I think the president's come to the conclusion because he's tried. He's tried; other presidents have tried. And I hope he's not persuaded by or even impacted by politics. … And I can tell you I'm one American who's prepared to support the president, whatever decision he makes.' Why have many big-voice Democrats gone into an underground bunker rather than offer even the faintest praise or encouragement for Trump? It's about not giving Trump credit for anything, including accomplishing an objective they supported. Sports Sunshine Girls Canada Relationships Relationships
Toronto Sun
2 hours ago
- Toronto Sun
EDITORIAL: Woe, Canada: No day to celebrate
People hold Canadian flags at an immigration ceremony in Toronto. Photo by JACK BOLAND / TORONTO SUN When one of Canada's largest cities cancels its Canada Day parade and one of its universities stages an 'Anti-Canada Day' BBQ, it's time to admit we've become what former Prime Minister Justin Trudeau bragged about: A post-national state. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account For the second year in a row, Montreal's Canada Day parade has been scrapped. In a press release, organizers said the popular event was canned due to 'ongoing planning disruptions, strained relations with city departments and unresolved challenges stemming from municipal worker strikes.' City officials maintain it was all a bureaucratic mix-up, with organizers failing to submit a permit application, despite being invited to 'on several occasions.' A spokesperson insisted to CBC that there will be a Canada Day celebration in that city. 'A land-use permit was issued this year to Production EGP for the Le Canada en Marche event to be held on July 1,' said Nicky Cayer. All is not lost. Montrealers still hankering for a celebratory hot dog can hop over to Parc Jeanne-Mance for a free 'Anti-Canada Day' BBQ and fundraiser put on by the Palestinian Feminist Collective. Posts advertising the event display the Quebec Public Interest Research Group (QPIRG) logo from McGill University. QPIRG is a student-funded resource centre at McGill. Its website says the university is threatening to pull funding if it continues its support for Students for Palestine's Honour and Resistance (SPHR). This advertisement has not loaded yet, but your article continues below. Canada is a country built on values of equity and freedom; a place that has welcomed millions of immigrants and refugees from around the world. They're valued for their culture, hard work and ambition. Bilingualism flourishes and we attempt to accommodate our differences while celebrating that which unites us. And yet, a major city can't get its act together to put on a parade to extoll those values. A world-renowned university that receives significant tax funding is being torn apart by the oxymoronic 'feminist Palestinian' group that's protesting events thousands of kilometres away. Gaza is an overwhelmingly patriarchal society, where women, gays and lesbians must fight for the freedoms we take for granted. In 'post-national' Canada, there are some who prefer to drag the Maple Leaf in the mud on July 1, rather than hold it high in the pride of place where it belongs. Sports Sunshine Girls Canada Relationships Relationships
