Canada has generated over $3 billion from U.S. counter-tariffs before scaling back levies in September, as per the Finance Department. This amount falls short of the $20 billion projected by the Liberals from retaliatory tariffs this fiscal year. Despite not reaching a trade agreement with the U.S., Prime Minister Mark Carney opted to remove most CUSMA-compliant imports to foster trade negotiations.
The upcoming budget release by the Liberals is anticipated to reveal a larger deficit compared to the previous fiscal update. Carney justified the tariff reduction by stating that the effectiveness of retaliatory measures was declining, noting that Canada was among the few countries imposing such tariffs on the U.S.
Finance Minister François-Philippe Champagne emphasized the need for adaptability in response to questions about the impact of reducing counter-tariffs on the budget. Bill Robson from the C.D. Howe Institute cautioned against heavy reliance on tariffs for revenue, citing potential economic harm.
The $3 billion figure excludes funds redistributed to affected industries. The government had implemented a relief program for certain goods, active during the tariff reduction in September. Catherine Cobden, President of the Canadian Steel Producers Association, criticized the exemptions granted, arguing for a focus on products not domestically produced.
The Finance Department disclosed that recent exemptions represent a $78 million loss in tariff revenue, benefiting Canadian businesses that paid the tariffs. Cobden called for reevaluating the remission framework to prioritize items not manufactured in Canada. Champagne defended the exemptions, highlighting the meticulous process in granting them.
Further details on tariff collection will be outlined in the upcoming budget.