Canada confirms it will not 'quietly' lift retaliatory tariffs against the US

Canadian Prime Minister Mark Carney - Photo: REUTERS

News of Canada's decision to reduce retaliatory tariffs against the US has drawn attention in the context of Canadian Prime Minister Mark Caryney's recent meeting in Rome with US Vice President JD Vance, after both attended the coronation of Pope Leo XIV at the Vatican.

Canadian opposition accuses government of secretly cutting taxes

According to a statement from Prime Minister Carney's office, the two sides discussed "urgent trade pressures and the need to build a new economic and security relationship".

Meanwhile, Mr. Vance described this as a "normal meeting" about common interests and goals between the two countries, including "fair trade policies".

Previously, Prime Minister Carney - who won the election on April 28 - imposed retaliatory tariffs worth billions of dollars on US goods, in response to the tariffs that Washington imposed on its goods.

However, during the election period, automakers were exempted from the tariffs, provided they maintained production and investment in Canada.

This information was published in the Canadian Government's Canada Gazette on May 7, along with information about the temporary suspension of tariffs on products used for processing and packaging of food, beverages, health care, manufacturing, national security and public safety.

The move went largely unnoticed until Oxford Economics released a report this week arguing that the exemptions covered so many products that the retaliatory tariffs on the US were reduced to “near zero”.

Opposition leader Pierre Poilievre used the report to accuse Mr Carney of "quietly reducing retaliatory tariffs to near zero without telling anyone".

Canada affirms to keep 70% tax imposed on the US

Canadian Finance Minister Francois-Philippe Champagne denied the allegations on May 18, calling them "lies."

“In retaliation for US tariffs, Canada has launched its largest response to date, including $60 billion in tariffs on consumer goods. 70% of those tariffs remain in place,” he wrote on X.

Mr Champagne's office explained to AFP that the tariffs were adjusted "to respond to the US but limit damage to the Canadian economy".

Champagne spokeswoman Audrey Milette said the temporary tariff reduction is for six months, to give Canadian businesses time to adjust their supply chains and reduce their dependence on US suppliers. Canada still imposes tariffs on about CAD 43 billion (about USD 31 billion) of US goods.

With a population of 41 million and about 75% of its exports going to the US, Canada’s economy is being hit hard by the tariffs imposed by Mr Trump, including a 25% general tariff and separate tariffs on cars, steel and aluminium, although some of these tariffs are on hold pending negotiations.

Back to topic

THANH HIEN

Source: https://tuoitre.vn/canada-khang-dinh-khong-am-tham-do-thue-tra-dua-voi-my-20250519092117915.htm