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Hamilton Spectator
3 days ago
- Automotive
- Hamilton Spectator
Five things to know about Canada's counter-tariffs on the U.S.
OTTAWA - After U.S. President Donald Trump boosted steel and aluminum tariffs to 50 per cent, some industry groups and the Official Opposition have called on the federal government to retaliate in kind. Here's a look at the counter-tariffs Canada has imposed so far. 1. What do the counter-tariffs cover? The Canadian government has imposed retaliatory tariffs on U.S. goods three times since Trump's trade war began, aimed at what it says are imports worth $95.4 billion worth. On March 4 — after the U.S. imposed 25 per cent tariffs on all Canadian goods, along with 10 per cent on energy products — then-prime minister Justin Trudeau announced the first raft of counter-tariffs on $30 billion worth of U.S. goods. Those 25 per cent tariffs target things like orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol. On March 12, the U.S. added a 25 per cent tariff on all steel and aluminum products, which was stacked on top of existing levies on Canadian goods. Canada's response a day later was 25 per cent reciprocal tariffs on another $29.8 billion of U.S. goods, including steel and aluminum, tools, computers and sport equipment. On April 9, in response to another round of U.S. tariffs — this time targeting the Canadian auto industry — the federal government imposed 25 per cent duties on 'non-CUSMA compliant vehicles' from the U.S. and 25 per cent tariffs on the content of CUSMA-compliant vehicles from the U.S. The government says this covers $35.6 billion in auto imports from the United States. 2. What are the exemptions? On April 15, in the midst of the federal election campaign, Prime Minister Mark Carney announced that the government was exempting some products from tariffs for six months to help Canadian businesses adapt. The tariff holiday covers specific categories: goods used in Canadian manufacturing, processing and food and beverage packaging, as well as imports used to support public health, health care, public safety and national security objectives. And when it comes to vehicle tariffs, the government said 'companies that produce autos in Canada have been granted remission to ensure the ongoing viability of their Canadian operations,' but that it is 'contingent on them maintaining production levels in Canada and on following through with planned investments.' 3. Does this mean all counter-tariffs have been dropped? On Wednesday, Opposition House leader Andrew Scheer said the government 'secretly dropped those tariffs to zero during the campaign.' This line has been repeated often by the Conservatives since the release of a report by Oxford Economics on May 13, which said Canada paused counter-tariffs for six months 'on nearly all U.S. goods imports.' The report said it estimated the exemptions would cover about 97 per cent of the tariffs. The government said that's not true. A spokesperson for Industry Minister Mélanie Joly said the exemptions apply to 30 per cent of the $60 billion worth of goods that are subject to tariffs — a figure that doesn't include the auto tariffs. William Pellerin, a partner in international trade at McMillan LLP, said the exemption is not nearly as broad as what's been reported. 'I think that report caused a lot of consternation within the trading community and the legal community. It is absolutely, certainly not zero impact on our clients,' he said, noting many of them are paying millions of dollars in duties already. 4. Where does all this leave Canadian businesses? Pellerin said there's a lot of confusion out there about what's covered by the exemptions. The Canada Border Services Agency has issued a customs notice explaining how to interpret the exemptions, 'but in many circumstances it's simply not obvious at all,' Pellerin said. As an example, he said he has clients who have been told by the CBSA that imported agricultural equipment is not exempt. 'We actually think that that's legally incorrect, that they've poorly interpreted the order-in-council,' he said. That's the kind of thing his firm is trying to sort out while it waits and hopes for a long-term resolution. 'Whatever actions need to be taken to get back to a tariff-free world (are) absolutely necessary,' he said. 5. How much tariff revenue has the government collected and where is it going? Conservative MPs have been asking this question in the House of Commons all week. On Tuesday, Conservative MP Dan Albas charged that 'Liberals promised $20 billion in elbows-up U.S. tariffs, but later dropped them with no regard to affected Canadian workers or fiscal impacts.' Prime Minister Carney responded to say that tariffs are still in effect and $1.7 billion has been collected so far. The federal government's latest fiscal monitor showed Canada collected an extra $617 million in import duties in March, as compared to the year before. Figures for April and May have not yet been published. During the election campaign, the Liberals and the Conservatives both estimated Canada would collect $20 billion in tariff revenue this fiscal year. In its election platform, the Liberal party pledged that 'every dollar raised from these tariffs will support Canadian workers and businesses affected by the trade war.' Officials at the Finance Department said in a statement that the money is going into the consolidated revenue fund and being used 'to support those hardest hit by this economic disruption.' The statement said that is happening through programs like employment insurance work-sharing, deferral of corporate income tax payments and GST/HST remittances, or by offering liquidity support through Export Development Canada, Farm Credit Canada, Business Development Canada and the Large Enterprise Tariff Loan Facility. — With files from Craig Lord This report by The Canadian Press was first published June 5, 2025.
Toronto Star
3 days ago
- Business
- Toronto Star
Five things to know about Canada's counter-tariffs on the U.S.
OTTAWA - After U.S. President Donald Trump boosted steel and aluminum tariffs to 50 per cent, some industry groups and the Official Opposition have called on the federal government to retaliate in kind. Here's a look at the counter-tariffs Canada has imposed so far. 1. What do the counter-tariffs cover? The Canadian government has imposed retaliatory tariffs on U.S. goods three times since Trump's trade war began, aimed at what it says are imports worth $95.4 billion worth. On March 4 — after the U.S. imposed 25 per cent tariffs on all Canadian goods, along with 10 per cent on energy products — then-prime minister Justin Trudeau announced the first raft of counter-tariffs on $30 billion worth of U.S. goods. ARTICLE CONTINUES BELOW Those 25 per cent tariffs target things like orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol. On March 12, the U.S. added a 25 per cent tariff on all steel and aluminum products, which was stacked on top of existing levies on Canadian goods. Canada's response a day later was 25 per cent reciprocal tariffs on another $29.8 billion of U.S. goods, including steel and aluminum, tools, computers and sport equipment. On April 9, in response to another round of U.S. tariffs — this time targeting the Canadian auto industry — the federal government imposed 25 per cent duties on 'non-CUSMA compliant vehicles' from the U.S. and 25 per cent tariffs on the content of CUSMA-compliant vehicles from the U.S. The government says this covers $35.6 billion in auto imports from the United States. 2. What are the exemptions? On April 15, in the midst of the federal election campaign, Prime Minister Mark Carney announced that the government was exempting some products from tariffs for six months to help Canadian businesses adapt. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The tariff holiday covers specific categories: goods used in Canadian manufacturing, processing and food and beverage packaging, as well as imports used to support public health, health care, public safety and national security objectives. And when it comes to vehicle tariffs, the government said 'companies that produce autos in Canada have been granted remission to ensure the ongoing viability of their Canadian operations,' but that it is 'contingent on them maintaining production levels in Canada and on following through with planned investments.' 3. Does this mean all counter-tariffs have been dropped? On Wednesday, Opposition House leader Andrew Scheer said the government 'secretly dropped those tariffs to zero during the campaign.' This line has been repeated often by the Conservatives since the release of a report by Oxford Economics on May 13, which said Canada paused counter-tariffs for six months 'on nearly all U.S. goods imports.' The report said it estimated the exemptions would cover about 97 per cent of the tariffs. The government said that's not true. A spokesperson for Industry Minister Mélanie Joly said the exemptions apply to 30 per cent of the $60 billion worth of goods that are subject to tariffs — a figure that doesn't include the auto tariffs. William Pellerin, a partner in international trade at McMillan LLP, said the exemption is not nearly as broad as what's been reported. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'I think that report caused a lot of consternation within the trading community and the legal community. It is absolutely, certainly not zero impact on our clients,' he said, noting many of them are paying millions of dollars in duties already. 4. Where does all this leave Canadian businesses? Pellerin said there's a lot of confusion out there about what's covered by the exemptions. The Canada Border Services Agency has issued a customs notice explaining how to interpret the exemptions, 'but in many circumstances it's simply not obvious at all,' Pellerin said. As an example, he said he has clients who have been told by the CBSA that imported agricultural equipment is not exempt. 'We actually think that that's legally incorrect, that they've poorly interpreted the order-in-council,' he said. That's the kind of thing his firm is trying to sort out while it waits and hopes for a long-term resolution. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'Whatever actions need to be taken to get back to a tariff-free world (are) absolutely necessary,' he said. 5. How much tariff revenue has the government collected and where is it going? Conservative MPs have been asking this question in the House of Commons all week. On Tuesday, Conservative MP Dan Albas charged that 'Liberals promised $20 billion in elbows-up U.S. tariffs, but later dropped them with no regard to affected Canadian workers or fiscal impacts.' Prime Minister Carney responded to say that tariffs are still in effect and $1.7 billion has been collected so far. The federal government's latest fiscal monitor showed Canada collected an extra $617 million in import duties in March, as compared to the year before. Figures for April and May have not yet been published. During the election campaign, the Liberals and the Conservatives both estimated Canada would collect $20 billion in tariff revenue this fiscal year. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW In its election platform, the Liberal party pledged that 'every dollar raised from these tariffs will support Canadian workers and businesses affected by the trade war.' Officials at the Finance Department said in a statement that the money is going into the consolidated revenue fund and being used 'to support those hardest hit by this economic disruption.' The statement said that is happening through programs like employment insurance work-sharing, deferral of corporate income tax payments and GST/HST remittances, or by offering liquidity support through Export Development Canada, Farm Credit Canada, Business Development Canada and the Large Enterprise Tariff Loan Facility. — With files from Craig Lord This report by The Canadian Press was first published June 5, 2025.
Yahoo
3 days ago
- Automotive
- Yahoo
Five things to know about Canada's counter-tariffs on the U.S.
OTTAWA — After U.S. President Donald Trump boosted steel and aluminum tariffs to 50 per cent, some industry groups and the Official Opposition have called on the federal government to retaliate in kind. Here's a look at the counter-tariffs Canada has imposed so far. 1. What do the counter-tariffs cover? The Canadian government has imposed retaliatory tariffs on U.S. goods three times since Trump's trade war began, aimed at what it says are imports worth $95.4 billion worth. On March 4 — after the U.S. imposed 25 per cent tariffs on all Canadian goods, along with 10 per cent on energy products — then-prime minister Justin Trudeau announced the first raft of counter-tariffs on $30 billion worth of U.S. goods. Those 25 per cent tariffs target things like orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol. On March 12, the U.S. added a 25 per cent tariff on all steel and aluminum products, which was stacked on top of existing levies on Canadian goods. Canada's response a day later was 25 per cent reciprocal tariffs on another $29.8 billion of U.S. goods, including steel and aluminum, tools, computers and sport equipment. On April 9, in response to another round of U.S. tariffs — this time targeting the Canadian auto industry — the federal government imposed 25 per cent duties on "non-CUSMA compliant vehicles" from the U.S. and 25 per cent tariffs on the content of CUSMA-compliant vehicles from the U.S. The government says this covers $35.6 billion in auto imports from the United States. 2. What are the exemptions? On April 15, in the midst of the federal election campaign, Prime Minister Mark Carney announced that the government was exempting some products from tariffs for six months to help Canadian businesses adapt. The tariff holiday covers specific categories: goods used in Canadian manufacturing, processing and food and beverage packaging, as well as imports used to support public health, health care, public safety and national security objectives. And when it comes to vehicle tariffs, the government said "companies that produce autos in Canada have been granted remission to ensure the ongoing viability of their Canadian operations," but that it is "contingent on them maintaining production levels in Canada and on following through with planned investments." 3. Does this mean all counter-tariffs have been dropped? On Wednesday, Opposition House leader Andrew Scheer said the government "secretly dropped those tariffs to zero during the campaign." This line has been repeated often by the Conservatives since the release of a report by Oxford Economics on May 13, which said Canada paused counter-tariffs for six months "on nearly all U.S. goods imports." The report said it estimated the exemptions would cover about 97 per cent of the tariffs. The government said that's not true. A spokesperson for Industry Minister Mélanie Joly said the exemptions apply to 30 per cent of the $60 billion worth of goods that are subject to tariffs — a figure that doesn't include the auto tariffs. William Pellerin, a partner in international trade at McMillan LLP, said the exemption is not nearly as broad as what's been reported. "I think that report caused a lot of consternation within the trading community and the legal community. It is absolutely, certainly not zero impact on our clients," he said, noting many of them are paying millions of dollars in duties already. 4. Where does all this leave Canadian businesses? Pellerin said there's a lot of confusion out there about what's covered by the exemptions. The Canada Border Services Agency has issued a customs notice explaining how to interpret the exemptions, "but in many circumstances it's simply not obvious at all," Pellerin said. As an example, he said he has clients who have been told by the CBSA that imported agricultural equipment is not exempt. "We actually think that that's legally incorrect, that they've poorly interpreted the order-in-council," he said. That's the kind of thing his firm is trying to sort out while it waits and hopes for a long-term resolution. "Whatever actions need to be taken to get back to a tariff-free world (are) absolutely necessary," he said. 5. How much tariff revenue has the government collected and where is it going? Conservative MPs have been asking this question in the House of Commons all week. On Tuesday, Conservative MP Dan Albas charged that "Liberals promised $20 billion in elbows-up U.S. tariffs, but later dropped them with no regard to affected Canadian workers or fiscal impacts." Prime Minister Carney responded to say that tariffs are still in effect and $1.7 billion has been collected so far. The federal government's latest fiscal monitor showed Canada collected an extra $617 million in import duties in March, as compared to the year before. Figures for April and May have not yet been published. During the election campaign, the Liberals and the Conservatives both estimated Canada would collect $20 billion in tariff revenue this fiscal year. In its election platform, the Liberal party pledged that "every dollar raised from these tariffs will support Canadian workers and businesses affected by the trade war." Officials at the Finance Department said in a statement that the money is going into the consolidated revenue fund and being used "to support those hardest hit by this economic disruption." The statement said that is happening through programs like employment insurance work-sharing, deferral of corporate income tax payments and GST/HST remittances, or by offering liquidity support through Export Development Canada, Farm Credit Canada, Business Development Canada and the Large Enterprise Tariff Loan Facility. — With files from Craig Lord This report by The Canadian Press was first published June 5, 2025. Sarah Ritchie, The Canadian Press
Winnipeg Free Press
3 days ago
- Automotive
- Winnipeg Free Press
Five things to know about Canada's counter-tariffs on the U.S.
OTTAWA – After U.S. President Donald Trump boosted steel and aluminum tariffs to 50 per cent, some industry groups and the Official Opposition have called on the federal government to retaliate in kind. Here's a look at the counter-tariffs Canada has imposed so far. 1. What do the counter-tariffs cover? The Canadian government has imposed retaliatory tariffs on U.S. goods three times since Trump's trade war began, aimed at what it says are imports worth $95.4 billion worth. On March 4 — after the U.S. imposed 25 per cent tariffs on all Canadian goods, along with 10 per cent on energy products — then-prime minister Justin Trudeau announced the first raft of counter-tariffs on $30 billion worth of U.S. goods. Those 25 per cent tariffs target things like orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol. On March 12, the U.S. added a 25 per cent tariff on all steel and aluminum products, which was stacked on top of existing levies on Canadian goods. Canada's response a day later was 25 per cent reciprocal tariffs on another $29.8 billion of U.S. goods, including steel and aluminum, tools, computers and sport equipment. On April 9, in response to another round of U.S. tariffs — this time targeting the Canadian auto industry — the federal government imposed 25 per cent duties on 'non-CUSMA compliant vehicles' from the U.S. and 25 per cent tariffs on the content of CUSMA-compliant vehicles from the U.S. The government says this covers $35.6 billion in auto imports from the United States. 2. What are the exemptions? On April 15, in the midst of the federal election campaign, Prime Minister Mark Carney announced that the government was exempting some products from tariffs for six months to help Canadian businesses adapt. The tariff holiday covers specific categories: goods used in Canadian manufacturing, processing and food and beverage packaging, as well as imports used to support public health, health care, public safety and national security objectives. And when it comes to vehicle tariffs, the government said 'companies that produce autos in Canada have been granted remission to ensure the ongoing viability of their Canadian operations,' but that it is 'contingent on them maintaining production levels in Canada and on following through with planned investments.' 3. Does this mean all counter-tariffs have been dropped? On Wednesday, Opposition House leader Andrew Scheer said the government 'secretly dropped those tariffs to zero during the campaign.' This line has been repeated often by the Conservatives since the release of a report by Oxford Economics on May 13, which said Canada paused counter-tariffs for six months 'on nearly all U.S. goods imports.' The report said it estimated the exemptions would cover about 97 per cent of the tariffs. The government said that's not true. A spokesperson for Industry Minister Mélanie Joly said the exemptions apply to 30 per cent of the $60 billion worth of goods that are subject to tariffs — a figure that doesn't include the auto tariffs. William Pellerin, a partner in international trade at McMillan LLP, said the exemption is not nearly as broad as what's been reported. 'I think that report caused a lot of consternation within the trading community and the legal community. It is absolutely, certainly not zero impact on our clients,' he said, noting many of them are paying millions of dollars in duties already. 4. Where does all this leave Canadian businesses? Pellerin said there's a lot of confusion out there about what's covered by the exemptions. The Canada Border Services Agency has issued a customs notice explaining how to interpret the exemptions, 'but in many circumstances it's simply not obvious at all,' Pellerin said. As an example, he said he has clients who have been told by the CBSA that imported agricultural equipment is not exempt. 'We actually think that that's legally incorrect, that they've poorly interpreted the order-in-council,' he said. That's the kind of thing his firm is trying to sort out while it waits and hopes for a long-term resolution. 'Whatever actions need to be taken to get back to a tariff-free world (are) absolutely necessary,' he said. 5. How much tariff revenue has the government collected and where is it going? Conservative MPs have been asking this question in the House of Commons all week. On Tuesday, Conservative MP Dan Albas charged that 'Liberals promised $20 billion in elbows-up U.S. tariffs, but later dropped them with no regard to affected Canadian workers or fiscal impacts.' Prime Minister Carney responded to say that tariffs are still in effect and $1.7 billion has been collected so far. The federal government's latest fiscal monitor showed Canada collected an extra $617 million in import duties in March, as compared to the year before. Figures for April and May have not yet been published. During the election campaign, the Liberals and the Conservatives both estimated Canada would collect $20 billion in tariff revenue this fiscal year. Monday Mornings The latest local business news and a lookahead to the coming week. In its election platform, the Liberal party pledged that 'every dollar raised from these tariffs will support Canadian workers and businesses affected by the trade war.' Officials at the Finance Department said in a statement that the money is going into the consolidated revenue fund and being used 'to support those hardest hit by this economic disruption.' The statement said that is happening through programs like employment insurance work-sharing, deferral of corporate income tax payments and GST/HST remittances, or by offering liquidity support through Export Development Canada, Farm Credit Canada, Business Development Canada and the Large Enterprise Tariff Loan Facility. — With files from Craig Lord This report by The Canadian Press was first published June 5, 2025.
National Observer
09-05-2025
- Business
- National Observer
Unemployment rate rises to 6.9% in April as trade war hits factory jobs
The national unemployment rate ticked up to 6.9 per cent in April as the manufacturing sector started to strain under the weight of tariffs from the United States, Statistics Canada said Friday. The Canadian economy added 7,400 jobs last month, the agency said, slightly outpacing economist expectations for a gain of 2,500 positions. But the unemployment rate also rose two tenths of a percentage point in April, topping economists' call for a jobless rate of 6.8 per cent. At 6.9 per cent, the unemployment rate is back at its recent high seen in November. Before then, the jobless rate had not hit that level since January 2017, outside the pandemic years. While the economy did add jobs in April, the rising unemployment rate suggests employers were not hiring as quickly as Canada's population was growing. Statistics Canada noted that's a reversal of earlier this year, when strong employment gains coincided with slowing population growth. Canada's manufacturing industry led job losses in April, shedding 31,000 positions, with the bulk of the impact in Ontario. Canada's manufacturing industry contracted in April as the sector grappled with tariffs from the United States. The hit came after the United States imposed tariffs starting in March on non-CUSMA compliant imports from Canada as well as sector-specific levies on steel and aluminum and automobiles. Manufacturing-heavy Windsor, Ont., saw its unemployment rate jump 1.4 percentage points to 10.7 per cent last month. Statistics Canada said the April figures showed the first significant decline in manufacturing jobs since November, though employment levels for the industry remain steady year-over-year. The wholesale and retail trade sector also lost some 27,000 jobs in April. Offsetting the declines last month was a gain of 37,000 jobs in the public administration sector, which Statistics Canada said was largely temporary work tied to the federal election in April. Average hourly wages rose 3.4 per cent in April, down slightly from 3.6 per cent in March. BMO chief economist Doug Porter said in a note to clients Friday that the details of the April jobs report are worthy of a failing grade for the labour market, with the trade war serving as a clear source of weakness. "This is the first major data reading for April, and it shows that tariffs are already taking a material bite out of the economy," he said. The April job figures mark the last reading the Bank of Canada will get on the health of the labour market before its next interest rate decision set for June 4. The central bank held its benchmark rate steady at 2.75 per cent at its decision last month, breaking a streak of seven consecutive cuts as it waited for more clarity on how Canada's trade dispute with the United States would unfold. Ali Jaffery, senior economist at CIBC, said in a note that the latest jobs report supports the case for a return to cuts in June. "Overall, we are seeing a job market that was weak heading into the trade war, now looking like it could soon buckle," Jaffery said. Porter echoed that call, arguing the odds are now higher for a quarter-point cut for June. Despite economic uncertainty tied to the U.S. trade dispute, most workers were telling Statistics Canada they felt secure in their jobs. Some 73.9 per cent of workers aged 15-69 disagreed when asked if they thought they'd lose their job in the next six months, though the proportion of those who felt otherwise was highest in industries reliant on exports to the United States.
