Canada suspends some countervailing tariffs on several product categories

Canada suspends counter-tariffs on US

 Canada suspends some countervailing tariffs on the United States

Canada has temporarily suspended some countervailing tariffs it imposed on the United States, and Finance Minister François-Philippe Champagne denied reports on Sunday that they would be completely lifted.

Canadian Prime Minister Mark Carney's government imposed countervailing tariffs on billions of dollars' worth of imports from the United States in retaliation for U.S. tariffs on Canadian goods.

Carney was elected on April 28 on a pledge to challenge U.S. President Donald Trump. During the election campaign, automakers were given a reprieve, provided they maintain production and investments in Canada. This was reported in the Canada Gazette on May 7, along with the suspension of tariffs on products used in food and beverage processing and packaging, healthcare, manufacturing, national security, and public safety.

Oxford Economics reported this week that the exemptions covered so many product categories that the U.S. tariff rate effectively fell to "near zero." Opposition Leader Pierre Poilievre cited this widely reported report to accuse Carney of "quietly reducing retaliatory tariffs to 'near zero' without telling anyone."

Champagne denied this. "In response to US tariffs, Canada launched its largest ever retaliation—including $60 billion in tariffs on end-use goods. Seventy percent of these tariffs remain in effect," he said on the X platform. His office confirmed to AFP that Canada's tariff response "was designed to retaliate against the US while limiting the economic damage to Canada."

Audrey Millet, a spokeswoman for Champagne, said the exemption from the tariffs was granted for six months to give some Canadian companies "more time to adjust their supply chains and reduce their reliance on US suppliers."

She added that Canada still imposes tariffs on approximately CAN$43 billion ($31 billion) in US goods. On Sunday, Carney and US Vice President J.D. Vance met in Rome to discuss trade relations between their two countries, after attending the inaugural Mass for Pope Leo XIV at the Vatican.

According to a statement from Carney's office, the two officials discussed "trade pressures and the need to build a new economic relationship." In a brief statement, Vance said the meeting focused on the two countries' shared interests and goals, "including fair trade policies."

Canada, with a population of 41 million, directs three-quarters of its exports to the United States, and the latest jobs report shows that Trump's tariffs are hurting the Canadian economy. The US president imposed a 25% tariff on Canadian goods imported into the United States, in addition to tariffs on specific sectors such as automobiles, steel, and aluminum, but suspended some of them pending negotiations.