Brydris

How It All Started

When U.S. President Donald Trump raised tariffs — a type of tax — on Canadian steel and aluminum up to 50%, it hit Canadian businesses hard. He claimed it was to protect American industry, but it started a major trade fight.

That’s when Canada decided to hit back.

Canada’s Counter-Tariffs Explained

Canada has responded with three rounds of retaliatory tariffs since Trump’s trade war began — covering about $95.4 billion in U.S. goods.

1. March 4: After the U.S. slapped a 25% tariff on all Canadian goods and 10% on energy, Canada hit back with 25% tariffs on $30 billion worth of American products. These included:

Orange juice

Motorcycles

Shoes and clothing

Coffee

Cosmetics and alcohol



2. March 13: When the U.S. added another 25% tariff just on steel and aluminum, Canada returned fire again — with $29.8 billion worth of reciprocal tariffs on:

Steel and aluminum

Tools

Computers

Sporting equipment



3. April 9: After the U.S. targeted Canada’s auto industry, Canada responded by adding 25% tariffs on:

U.S. vehicles that don’t follow CUSMA (the updated NAFTA agreement)

Auto parts in CUSMA-approved vehicles
This covered about $35.6 billion worth of imports.




Are There Any Exceptions?

Yes — but it’s complicated.

On April 15, during an election campaign, Prime Minister Mark Carney announced a six-month “tariff holiday” for some items. The goal was to give Canadian businesses time to adjust. The exemptions covered:

Goods used in Canadian manufacturing and packaging

Products important to public health, safety, and national security

Some auto companies, but only if they keep jobs and investment in Canada


Did Canada Drop Most of the Tariffs?

Not really — although some people say otherwise.

Andrew Scheer and other Conservative politicians claimed that the government secretly dropped nearly all tariffs, citing a report from Oxford Economics saying 97% of U.S. goods were exempt.

But the government says that number is way off. A spokesperson for Industry Minister Mélanie Joly said the exemptions only apply to 30% of $60 billion in goods — and that doesn’t even include the auto tariffs.

Trade lawyer William Pellerin confirmed this, saying the report caused a lot of confusion:

> “It is absolutely, certainly not zero impact on our clients… Many are still paying millions in duties.”



What Does This Mean for Canadian Businesses?

Lots of confusion.

Even though the Canada Border Services Agency (CBSA) released an official guide, many businesses don’t know if their products are exempt or not. Some are being told they still have to pay, even when they believe they qualify for relief.

For example, some agricultural equipment was denied an exemption, even though lawyers argue that’s a mistake.

Everyone agrees: Canada needs a clear, long-term solution. As Pellerin put it:

> “Whatever actions need to be taken to get back to a tariff-free world (are) absolutely necessary.”



Where’s All the Tariff Money Going?

According to the federal government, Canada has collected $1.7 billion in tariff money so far.

In March alone, import duty revenue jumped by $617 million compared to the previous year. More numbers are still on the way.

During the election, both the Liberals and Conservatives said the tariffs would bring in about $20 billion this year.

The Liberal Party’s promise: Every dollar would go to help workers and businesses hit by the trade war.

Where’s it being spent?

Employment Insurance work-sharing

Delays on corporate tax and GST/HST payments

Loans and support through government programs like:

Export Development Canada

Farm Credit Canada

Business Development Canada

The Large Enterprise Tariff Loan Facility