Canada has temporarily suspended several retaliatory tariffs on US goods, but Finance Minister François-Philippe Champagne has denied reports suggesting the duties were lifted entirely.
The tariffs, originally introduced by Prime Minister Mark Carney’s government, targeted billions of dollars’ worth of US imports in response to American trade restrictions on Canadian goods.
Carney, elected on April 28 with a strong anti-Trump stance, had pledged to confront US tariffs head-on.
During the election campaign, Canadian automakers were given temporary relief, provided they maintained production and investments within the country.
According to the May 7 edition of the Canada Gazette, the suspended tariffs cover products vital to food and beverage processing, public health, national security, public safety, and manufacturing.
A recent report from Oxford Economics noted that exemptions now apply to so many product categories that Canada’s effective tariff rate on US goods has dropped to nearly zero.
Opposition leader Pierre Poilievre referenced this report to accuse Carney of quietly reducing the retaliatory tariffs without public disclosure.
Champagne rejected the claim, stating on social media platform X that Canada responded to US tariffs with the largest countermeasure in its history—$60 billion in duties on finished goods. He emphasized that 70% of those tariffs remain in place.
A spokesperson for Champagne confirmed to Agence France-Presse that the government’s response was designed to counteract US tariffs while minimizing economic harm to Canada.
Audrey Millette, speaking on behalf of the minister, added that the six-month exemption period was intended to give Canadian companies more time to adjust their supply chains and reduce reliance on US suppliers.
Despite the exemptions, Canada continues to impose approximately CA$43 billion (US$31 billion) in tariffs on American products.
On Sunday, Prime Minister Carney met with US Vice President J. D. Vance in Rome following the inaugural mass of Pope Leo XIV at the Vatican. A statement from Carney’s office said the two officials discussed trade tensions and the need to build a new economic partnership between the two nations.
Vance briefly remarked that the meeting focused on shared interests, including the pursuit of fair trade policies.
Canada, which exports nearly 75% of its goods to the United States, has been economically impacted by the tariffs imposed by former President Donald Trump.
These included a 25% duty on Canadian imports, along with additional sector-specific tariffs on automobiles, steel, and aluminum. While some of these duties have been paused pending further negotiations, they continue to strain bilateral trade relations.
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