Canada pauses some counter tariffs against US

Canadian Prime Minister Mark Carney has pledged to stand up to US President Donald Trump. Photo / Getty Images

Canada has temporarily paused some counter tariffs against the United States, but Finance Minister Francois-Philippe Champagne on Sunday pushed back against claims they have all been quietly lifted.

The government of Prime Minister Mark Carney, who won Canada’s April 28 election on a pledge to stand up to US President Donald Trump, had slapped counter tariffs on billions of dollars of imports from the United States in response to US tariffs on Canadian goods.

During the election campaign, automakers were offered a reprieve, provided they maintained production and investment in Canada.

This was outlined on May 7 in the Canada Gazette, the government’s official newspaper, along with a pause on tariffs on products used in food and beverage processing and packaging, health, manufacturing, national security and public safety.

Oxford Economics said in a report this week that the exemptions covered so many categories of products that the tariffs rate against the United States was effectively dropped to “nearly zero.”

Opposition leader Pierre Poilievre pounced on the claim, widely cited in the media, to accuse Carney of having “quietly dropped retaliatory tariffs to ‘nearly zero’ without telling anyone”.

Champagne called those assertions “falsehoods”.

“To retaliate against US tariffs, Canada launched largest-ever response - including $60B [NZ$73b] of tariffs on end-use goods. 70% of those tariffs are still in place,” he said on X.

Canada’s tariffs response, his office told AFP, “was calibrated to respond to the US while limiting economic harm to Canada”.

Tariffs relief was provided for six months to give some Canadian companies “more time to adjust their supply chains and become less dependent on US suppliers”, Champagne spokeswoman Audrey Milette said.

Canada continues to charge tariffs on roughly Can$43 billion ($52b) of US goods, she added.

The nation of 41 million people sends three-quarters of its exports to the United States, and the latest jobs report shows tariffs imposed by Trump are already damaging the Canadian economy.

The US President has slapped general tariffs of 25% on Canada as well as sector-specific levies on autos, steel and aluminium, but he has suspended some of them pending negotiations.

-Agence France-Presse