Canada collected over $3 billion from U.S. counter-tariffs before lifting a portion of the levies in September, as per the Finance Department. This amount falls short of the $20 billion projected by the Liberals for this fiscal year through retaliatory tariffs on U.S. goods. Prime Minister Mark Carney removed the majority of CUSMA-compliant imports to facilitate trade discussions with Washington.
The upcoming budget, set for release on Tuesday, is anticipated to reveal a larger deficit compared to the prior fiscal update. Carney justified the tariff removal, citing the diminishing value of retaliations, emphasizing that Canada was one of two nations imposing such tariffs on the U.S.
Finance Minister François-Philippe Champagne stated that adjustments were necessary when questioned about the impact of removing most counter-tariffs on the budget. Bill Robson, from the C.D. Howe Institute, cautioned against relying on tariffs for revenue due to their damaging effect on the economy.
The $3 billion figure excludes redistributed amounts to affected industries. Exemptions, including recent ones, have led to a loss of $78 million in tariff revenue, with funds returned to businesses. The Canadian Steel Producers Association criticized the exemptions, advocating for a focus on products not made domestically.
Champagne defended the exemptions, emphasizing the careful granting process. Further details on tariff collections will be disclosed in the budget, according to the Finance Department.
