Latest news with #Francois-PhilippeChampagne
Toronto Sun
3 days ago
- Business
- Toronto Sun
Liberals pressed to reveal how much revenue U.S. tariff response has raised
Published Jun 02, 2025 • 4 minute read Finance Minister Francois-Philippe Champagne. Photo by Allen McInnis / Bloomberg OTTAWA — The Conservatives pushed the federal government on Monday to disclose how much revenue its counter-tariffs have generated so far — and accused the Liberals of putting their 'elbows down' as U.S. President Donald Trump threatens to ramp up his trade war. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Conservative members of Parliament asked at least 10 questions of the government in the House of Commons on Monday about the revenue raised so far from the counter-tariffs. Kyle Seeback, Conservative MP for Dufferin_Caledon, accused Prime Minister Mark Carney of putting his 'elbows down' through exemptions that limit the impact of Canada's counter-tariff response as Trump threatens to double existing tariffs on steel and aluminum to 50 per cent. Carney was in Saskatoon meeting with Canada's premiers on Monday. Responding to Seeback on the government's behalf, Finance Minister Francois-Philippe Champagne insisted that Canada will 'fight against unjustified and illegal tariffs on Canadian steel and aluminum.' He did not answer questions about the amount of revenue raised by counter-tariffs. This advertisement has not loaded yet, but your article continues below. However, the federal government's latest fiscal monitor, published May 30, showed Canada collected an extra $617 million in import duties in March, compared to a year earlier. Revenues from customs import duties topped $1 billion in March, more than double the $427 million recorded a year earlier. 'This one-off bump seems pretty directly linked to the retaliatory tariff action taken by the Government of Canada,' said Randall Bartlett, deputy chief economist at Desjardins. Figures have not been published on how much revenue was generated by import duties in April or May. But Bartlett warned that, at the current pace, the revenues will fall short of the Liberals' projections. The United States' stop-and-go tariff dispute kicked off against Canada in March after Trump declared an emergency at the northern border related to the flow of fentanyl. He partially paused levies a few days later for imports that comply with the Canada-U.S.-Mexico Agreement on trade. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. In response, the federal government slapped retaliatory tariffs on billions of dollars in U.S. goods entering Canada — costs that are paid by Canadian businesses importing the items. The federal government announced some exemptions to Canada's counter-tariffs on April 15 related to certain inputs for manufacturing sectors, as well as for goods critical to public health and safety or national security. The Liberal party election platform, released four days later, projected that counter-tariffs on the United States would raise an estimated $20 billion over 12 months. Speaking on March 12 after Canada imposed retaliatory tariffs in response to U.S. tariffs on steel and aluminum, Carney said the government would 'make sure that all the proceeds from our tariffs go back to support workers in the affected industries.' This advertisement has not loaded yet, but your article continues below. Bartlett said the fiscal monitor shows the tariff response in March offered some 'windfall' revenue for Ottawa that improved the federal government's fiscal position heading into the thick of the trade dispute. But those single-month levels, if repeated through the current fiscal year, would leave the government well short of the revenue estimates in its platform. 'You need to really double or triple that pace of tariff revenue collection to hit the $20 billion in additional revenues,' Bartlett said. The trade dispute also threatens to hold back Canada's economic growth, Bartlett said, which would in turn throttle revenues paid into Ottawa's coffers through corporate and personal income taxes. Counter-tariffs, as a source of government revenue, are unlikely to offset the overall hit to the Canadian economy, he said. This advertisement has not loaded yet, but your article continues below. 'What might be a very near-term boost to overall revenues is really something that's going to fade gradually … as it gets offset by weaker overall incomes in the broader Canadian economy,' Bartlett said. The Canadian Press reached out to Champagne's office Monday to ask if the Liberals are still banking on $20 billion in counter-tariff revenues in the current fiscal year. His press secretary pointed to an interview the minister gave to CBC's Power & Politics program last Thursday. Champagne said then that the figure in the Liberal platform was 'a projection at a moment in time' and noted the tariff situation has been changing rapidly. 'Obviously we'll have to see where we end up,' he said. 'The scenario we want is to have no tariffs, so there would be no counter-tariffs.' This advertisement has not loaded yet, but your article continues below. The Liberals are forgoing publishing a spring budget but have promised a fiscal update in the fall. Champagne told the CBC last week that the Liberals want to present a fiscal projection when they have 'a level of certainty.' That argument doesn't satisfy Bartlett, who said the federal government feels 'rudderless' at the moment. He pointed out that the Liberals were able to publish at minimum an economic and fiscal 'snapshot' in July 2020, a few months after deploying 'enormous' stimulus in response to the onset of the COVID-19 pandemic. No government ever has perfect clarity about its fiscal projections, Bartlett said, but tabling some kind of update sends important signals to Canadians and financial markets about the government's policy agenda. This advertisement has not loaded yet, but your article continues below. He said that a lack of fiscal transparency has real life consequences for households — failing to provide clarity on the level of debt the government plans to issue can drive interest rates higher, for example. Bartlett argued a fiscal update is particularly important as the government promises increased infrastructure and defence spending and a broad-based income tax cut taking effect July 1 _ measures that will simultaneously ramp up spending and structurally reduce tax revenues. 'It's very difficult to have certainty as to what direction fiscal policy is going in, except that it is toward larger deficits and higher debt,' he said. Toronto Maple Leafs Olympics Toronto Maple Leafs Toronto Raptors Crime
Vancouver Sun
4 days ago
- Business
- Vancouver Sun
U.S. counter-tariffs help Canada bank $617M more in import duties than last March
Ottawa collected an extra $617 million in import duties this past March compared to a year earlier as counter-tariffs against U.S. trade restrictions came into effect. The federal government's latest fiscal monitor report, published late last week, shows revenues from customs import duties topped $1 billion in March, more than double the figure from a year earlier. In March, the federal government slapped retaliatory tariffs on billions of dollars in U.S. goods entering Canada — costs that are paid by Canadian businesses importing the items. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. The Liberal party projected during the recent federal election campaign that counter-tariffs against the United States would raise an estimated $20 billion over 12 months. Finance Minister Francois-Philippe Champagne said in an interview with CBC last week that the figure in the Liberal platform was 'a projection at a moment in time' and noted the tariff situation has been changing rapidly. The Liberals are forgoing publishing a spring budget but have promised a fiscal update in the fall. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Edmonton Journal
4 days ago
- Business
- Edmonton Journal
U.S. counter-tariffs help Canada bank $617M more in import duties than last March
Article content In March, the federal government slapped retaliatory tariffs on billions of dollars in U.S. goods entering Canada — costs that are paid by Canadian businesses importing the items. The Liberal party projected during the recent federal election campaign that counter-tariffs against the United States would raise an estimated $20 billion over 12 months. Finance Minister Francois-Philippe Champagne said in an interview with CBC last week that the figure in the Liberal platform was 'a projection at a moment in time' and noted the tariff situation has been changing rapidly. The Liberals are forgoing publishing a spring budget but have promised a fiscal update in the fall.
Canada Standard
28-05-2025
- Business
- Canada Standard
Government tables a Motion to bring down costs for Canadians
Canada News Centre 27 May 2025, 23:16 GMT+10 May 27, 2025 - Ottawa, Ontario - Department of Finance Canada Today, His Majesty King Charles III delivered the Speech from the Throne - outlining the government's bold and ambitious plan for the future. Key to that plan is bringing down costs so Canadians keep more of their paycheques to spend where it matters most. To that end, the Minister of Finance and National Revenue, the Honourable Francois-Philippe Champagne, today tabled a notice of Ways and Means Motion in Parliament with proposals to: Deliver a middle class tax cut, providing tax relief for nearly 22 million Canadians and saving families up to $840. Eliminate the Goods and Services Tax (GST) for first-time home buyers on new homes valued up to $1 million, saving them up to $50,000, and lower the GST for first-time home buyers on new homes valued between $1 million and $1.5 million. Remove the consumer carbon price from law, following its cancellation, effective April 1, 2025. With these measures, we are delivering change to cut taxes, bring down costs, and put money back in the pockets of Canadians.
Toronto Sun
26-05-2025
- Business
- Toronto Sun
‘Revenge tax': U.S. bill hits allies that have tax rules Trump doesn't like
Published May 26, 2025 • 4 minute read Canada's Finance Minister Francois-Philippe Champagne. Photo by Allen McInnis / Bloomberg Investors in nations with tax regimes that the U.S. deems unfair would face higher tax rates on income earned in the U.S. if the tax bill that's making its way to the Senate becomes law. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account A section of the bill, which passed the House of Representatives on May 22, takes aim at countries including Canada, the U.K., France and Australia that impose 'digital services taxes' on large technology companies such as Meta Platforms Inc. It also targets countries using provisions in a multicountry deal for minimum corporate taxes. The move to target allies with which the U.S. has decades-old tax treaties underscores U.S. President Donald Trump's willingness to change or break longstanding agreements with other nations. The so-called Section 899 provision includes 'what you could call a 'revenge tax' against what the U.S. considers to be unfair taxes that are levied by other countries on U.S. businesses,' said Robert Kepes, partner with tax law firm Morris Kepes Winters LLP in Toronto. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Institutional investors including sovereign wealth funds, pension funds and even government entities would be affected, as well as retail investors and businesses with U.S. assets. Section 899 would increase the federal income tax rate on passive U.S. income — such as dividends, interest and royalties — earned by people and institutions that are based in the targeted countries. The first increase would be five percentage points, rising by another five points each year to a maximum of 20 points above the statutory rate. Tax treaties are meant to prevent an entity from being taxed multiple times on the same income. This section of the bill 'effectively overrides certain U.S. tax treaty obligations — a significant departure from longstanding treaty commitments,' according to an analysis by attorneys at Greenberg Traurig LLP. This advertisement has not loaded yet, but your article continues below. The legislation also overrides special rules for government bodies such as central banks. For example, the Bank of Canada is currently exempt from having taxes withheld by the U.S., 'but this suggests that a withholding tax would apply,' Ronald Nobrega, partner with Fasken Martineau DuMoulin LLP, said of the bill. Tax Liability The bill's broad nature also suggests withholding taxes may apply to U.S. income earned in tax-sheltered retirement accounts. 'There would be an unexpected tax liability for many Canadian investors and Canadian companies,' Nobrega said. The Securities and Investment Management Association, a Canadian industry group, estimates the U.S. legislation would cost Canadian investors as much as $81 billion (US$59 billion) in additional taxes over seven years. This advertisement has not loaded yet, but your article continues below. The bill requires the government to name the countries with an unfair tax regime, Kepes said, giving nations time to try to negotiate their way out of the tax. Trump has consistently railed against what he views as discriminatory taxes, such as the effort by Organisation for Economic Co-operation and Development to change tax rules for large digital multinationals and make sure global companies pay a minimum tax on their income everywhere they operate. One of the president's first executive orders pulled the U.S. out of the OECD work on a global tax. The Global Business Alliance said in a statement that the U.S. bill 'invites a global tax war' and will harm U.S. credibility and undermine investment. Some international companies would face much higher U.S. tax rates and 'U.S. workers, not foreign governments, would bear the brunt of the economic fallout,' the group said. This advertisement has not loaded yet, but your article continues below. Canada's economy is highly integrated with the U.S., as the largest buyer of U.S.-made goods and a major exporter to it. In many sectors, Canadian and U.S. companies easily operate on both sides of the border. But Canada's government has adopted a both digital services tax and a global minimum tax. The former is a 3% tax on revenue over $20 million earned in Canada from services that 'rely on engagement, data, and content contributions of Canadian users' and applies to major U.S. technology firms including Meta and Alphabet Inc. European countries, including France, the U.K., and Italy, implemented similar levies during Trump's first term in the White House as they argued the U.S. was slowing OECD global talks on tax rules for the digital age. Those moves angered U.S. tech firms and Trump, who threatened tariffs. The French government said earlier this year it will not give up on its digital services tax despite the risk of the U.S. retaliation. This advertisement has not loaded yet, but your article continues below. Business groups in Canada have criticized the digital services tax for seeming to violate the North American trade pact and inviting retaliatory measures from the U.S. The government of Prime Minister Mark Carney hasn't indicated whether it will consider scrapping the measure, which was brought in under his predecessor, Justin Trudeau. 'You always pay attention to what other countries are doing, but as you know, every country is sovereign in how they determine what's in their best interest and their tax policy,' Finance Minister Francois-Philippe Champagne told reporters last week in response to a question about potential U.S. retaliation to Canada's tax regime. — With assistance from William Horobin. Ontario Music Sunshine Girls World Opinion
