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.
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
Yahoo
29 minutes ago
- Yahoo
US moves stealth bombers as it considers military action against Iran
The US military has sent American B-2 stealth bombers to the US island territory of Guam in the Pacific Ocean as President Donald Trump continues to weigh whether to join Israel in launching offensive air strikes on Iranian nuclear sites. The large jets are considered to be the only aircraft capable of carrying weapons that can strike Iran's most secure nuclear facility, which is buried deep underground below a mountain. US officials have not commented on whether the deployment is linked to the conflict in the Middle East. On Friday, Trump said he would give Iran a maximum of two weeks to make a deal to limit its nuclear programme in order to prevent US strikes. The planes are being sent to Guam from the US state of Missouri. While the deployment is not being officially connected to discussions around the US joining Israel's war on Iran, few will doubt the link. The huge planes, which have wingspans of more than 50 metres, are the only aircraft capable of carrying the GBU-57 Massive Ordnance Penetrator, a 30,000lb (13,608kg) bunker-busting bomb that experts say is required to destroy Iran's deep nuclear facility at Fordo. The facility is thought to be buried around 100m below the surface, protected by reinforced concrete. Despite their overwhelming aerial superiority, Israel lacks the munitions to damage the facility, hence requiring US support. Around 9,500km (5,900m) to the east of Fordo, Guam is maybe not the most obvious base from which to launch any attack. There had also been speculation that the UK facility, Diego Garcia, which is twice as close to Iran than Guam, might be used as a staging post. That would have caused a potential political and diplomatic headache for the British government, as they would have to give their blessing to any US attack, which might in turn make UK bases a target for Iranian retaliation. It is unclear why Guam was chosen as a destination for the bombers. US officials told the BBC's US partner, CBS News, that it is thought that the Guam base would provide better operational secrecy than Diego Garcia. Last week, at least 30 US military planes were moved from the US to Europe, according to flight tracking data reviewed by the BBC. The planes in question are all US military tanker aircraft used to re-fuel fighter jets and bombers. According to Flightradar24, at least seven of these - all KC-135s - stopped off in US airbases in Spain, Scotland and England. The jet movements come amid reports that the US has also moved an aircraft carrier - the USS Nimitz - from the South China Sea towards the Middle East. The Nimitz carries a contingent of fighter jets and is escorted by several guided missile destroyers. The US has also moved F-16, F-22 and F-35 fighter jets to bases in the Middle East, three defence officials told Reuters on Tuesday. The tanker planes moved to Europe over the past several days can be used to re-fuel these jets. US moves 30 jets as Iran attack speculation grows
Yahoo
29 minutes ago
- Yahoo
Rod Stewart Reveals The 1 Reason His Trump Friendship Is Done: 'I Can't Anymore'
Grammy-winning singer Rod Stewart says he can't be friends with President Donald Trump anymore, citing his administration's ongoing support for the brutal Israeli military campaign in Gaza that has killed more than 55,000 Palestinians since October 2023 according to the Gaza Health Ministry. Stewart recently sat down for an interview with Radio Times to promote his upcoming set at the Glastonbury Festival, only to tear into Trump, British Prime Minister Keir Starmer and Israeli leader Benjamin Netanyahu — after being asked if he still considers Trump a friend. 'No, I can't any more,' Stewart told the outlet. 'As long as he's selling arms to the Israelis — and he still is. How's that war ever gonna stop? And we should stop selling them as well. What did Starmer say yesterday? They dropped the talks on trade?' 'What fucking difference is that gonna make?' the singer continued. 'Someone's gotta do something. What Netanyahu is doing to the Palestinians is exactly what happened to the Jews. It's annihilation, and that's all he wants to do — get rid of them all.' 'I don't know how they sleep at night,' Stewart added. This isn't the first time Stewart has criticized Trump. The rock icon reportedly said ahead of the 2016 election that he didn't think Trump was 'presidential,' called him a 'prick' in 2020 for pulling out of the Paris Climate Accords and ridiculed him onstage last year. Stewart used to frequently socialize with the former real estate tycoon, however. The rock icon explained during his interview Tuesday that he lives 'literally half a mile' from Trump's Mar-a-Lago resort in Florida — and once 'knew him very, very well.' 'I used to go to his Christmas parties,' Stewart told Radio Times. 'He's always been a bit of a man's man. I liked him for that. But he didn't, as far as I'm concerned, treat women very well. But since he became president, he became another guy.' 'Somebody I didn't know,' he reflected. The singer mocked Trump last year during a Las Vegas concert ahead of the 2024 election for 'turning orange,' as Trump made the racist claim that then-Democratic nominee, former Vice President Kamala Harris, 'happened to turn Black' before announcing her run. Stewart is a model railway enthusiast at home, but also politically active in his spare time. In 2017, he covered all necessary expenses for a group of children with disabilities — whose parents couldn't raise enough money to travel to Washington, D.C. — to protest a GOP health care bill that included proposed cuts to Medicaid. 'I'm neither a Democrat nor a Republican, but I am a father,' he said at the time. CNN Data Chief Exposes How Trump Totally Lost This 'Political Battle' Proud Boys Have A Warning For Trump Former Trump Aide Steve Bannon Says Fox News Is Pushing 'Pure Propaganda' On Iran
TechCrunch
29 minutes ago
- TechCrunch
European leaders worry they're too reliant on U.S. tech
In Brief European governments may be reconsidering their use of American technology and services, according to a new report in The New York Times. The flashpoint seems to come after President Donald Trump sanctioned Karim Khan, the chief prosecutor at the International Criminal Court, over the ICC's decision to issue arrest warrants for Israel's Prime Minister Benjamin Netanyahu and former defense minister Yoav Gallant. In response, Microsoft turned off Khan's email address. Casper Klynge, a former diplomat who has also worked for Microsoft, told the NYT that Microsoft's action became 'the smoking gun that many Europeans had been looking for,' pushing them to look at alternative options. (Some ICC workers have reportedly switched over to Swiss email service Proton, for example.) 'If the U.S. administration goes after certain organizations, countries or individuals, the fear is American companies are obligated to comply,' Klynge said. For its part, Microsoft said it has subsequently made policy changes to protect customers similar situations, and it noted that it did not shut down the email accounts of four ICC judges who Trump sanctioned earlier this month. In addition, just this week, CEO Satya Nadella announced new 'sovereign solutions' to protect European institutions.
