The Canadian government has firmly rejected claims that it has quietly rolled back its retaliatory tariffs on U.S. goods, following reports suggesting recent exemptions had rendered the measures nearly ineffective.
Finance Minister François-Philippe Champagne responded on Sunday to accusations from the opposition that countermeasures had been reduced to “nearly zero,” calling the claims “falsehoods.” In a post on X (formerly Twitter), Champagne stated, “Canada launched its largest-ever response — including $60 billion of tariffs on end-use goods. 70% of those tariffs are still in place.”
The dispute follows a meeting in Rome between Prime Minister Mark Carney and U.S. Vice President JD Vance, where both discussed ongoing trade tensions and the need for a renewed economic and security framework. Carney, elected in April on a platform of confronting U.S. protectionism, had introduced sweeping counter-tariffs in response to American levies.
While a temporary six-month exemption was granted for certain sectors — including automotive, health, food processing, and national security — to mitigate domestic disruption, a report by Oxford Economics sparked controversy by suggesting these exemptions lowered the effective tariff rate to near zero. Opposition Leader Pierre Poilievre accused Carney of backing down on his trade stance.
In response, Champagne’s office clarified that roughly Can$43 billion (US$31 billion) in U.S. goods remain under tariff, and the exemptions were selectively designed to help Canadian industries diversify away from U.S. supply chains.
With 75% of Canadian exports going to the U.S., the ongoing tariff battle — and its impact on employment and trade flows — continues to shape Canada’s economic strategy. Some U.S. tariffs remain suspended as negotiations continue.
