Canada Slaps 25% ’Trade War Tax’ on US Goods—Because Nothing Says ’Free Market’ Like Tariff Spats

In a move that’ll make free-market purists choke on their maple syrup, Canada doubles down on retaliatory tariffs against its southern neighbor.

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Ottawa’s holding firm on 25% duties for most US imports—a tit-for-tat play that’d make Wall Street short-sellers proud. Who needs crypto volatility when you’ve got old-school trade wars?

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Meanwhile, hedge funds are probably already structuring tariff-arbitrage derivatives—because why solve problems when you can monetize them?

Champagne’s statement challenges an earlier research report

His statement challenges a 13 May report by Oxford Economics analysts Tony Stillo and Michael Davenport. The research firm noted that the recent exemptions were so broad they left Canada with “nearly zero” extra duty on U.S. products.

The earlier report gave fresh new reasons to opposition lawmakers, who accused Prime Minister Mark Carney of not being transparent about the true scale of his tariff strategy. During the recent election campaign, Carney cast himself as the candidate best able to manage the trade dispute and promised counter-measures that WOULD “cause maximum pain” south of the border. His Liberal Party secured victory in the 28 April vote.

Tensions have been high since U.S. President Donald TRUMP imposed duties on a range of Canadian and Mexican products, including cars and trucks, despite an existing North American trade deal. Canada hit back first with a 25 percent tariff on selected American consumer goods, steel, and aluminum, and later extended the charge to vehicles built in the United States.

These tariffs were first unveiled in March after Washington escalated the tariff dispute. Ottawa published a list covering consumer staples, metals, and machinery despite protests from several small firms.

On 15 April, however, Champagne rolled out a series of six-month exemptions. Canadian firms may import items for manufacturing, processing, and food-and-beverage packaging without paying the tariff for the short term. Goods required for public health, health care, public safety, and national security are also exempt during this brief window.

Automakers with plants in Canada, such as General Motors and Honda, can import certain vehicles duty-free under a “performance-based remission” scheme. Ottawa hopes the incentive will keep assembly lines in the country even as U.S. tariffs linger.

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