Canada has announced a temporary pause on certain retaliatory tariffs against the United States, though Finance Minister François-Philippe Champagne insists this does not mean the tariffs have been lifted entirely.
The move comes under Prime Minister Mark Carney’s government, which took office after the April 28 election on a platform promising to push back against U.S. President Donald Trump’s trade policies. In response to U.S. tariffs on Canadian products, Canada had imposed its largest-ever countermeasure—approximately $60 billion in tariffs on American imports.
As part of a strategic adjustment, Canada published exemptions on May 7 in the Canada Gazette, suspending tariffs on key goods used in the food, beverage, health, manufacturing, national security, and public safety sectors. Relief was also extended to automakers who committed to maintaining production in Canada.
A recent report by Oxford Economics suggested the broad scope of exemptions had effectively reduced the tariff rate to “nearly zero,” a claim seized upon by opposition leader Pierre Poilievre. He accused Carney of quietly removing tariffs without public notice.
Champagne rejected those claims as “falsehoods,” stating that “70% of the $60 billion in tariffs remain in place.” His office emphasized the government’s approach was designed to protect Canada’s economy while maintaining a firm response to U.S. trade actions.
According to government spokesperson Audrey Milette, the temporary relief—lasting six months—is intended to allow Canadian businesses time to reconfigure supply chains and reduce reliance on U.S. suppliers. Despite the pause, tariffs remain on around CA $43 billion (US $31 billion) worth of American goods.
Canada, which sends about 75% of its exports to the U.S., is already feeling the impact of U.S. tariffs under Trump, particularly in the automotive, steel, and aluminum sectors. While some U.S. tariffs have been suspended pending negotiations, many remain in force.
