U.S. and Canadian Tariffs Remain; Some Exemptions Introduced

With Canada’s newly elected government in place, efforts to resolve the ongoing tariff dispute with the United States are expected to intensify. While the U.S. has recently modified the application of certain tariffs to ease the impact on its economy and consumers, a full rollback has not occurred. Canada maintains its position: as long as the U.S. continues to impose unjustified tariffs on Canadian sectors, counter-tariffs will remain in effect.

 However, Canada has introduced targeted adjustments to support domestic industries. Key updates for retailers include:

• Temporary Relief Measures: As of April 15, 2025, Canada has implemented a six-month remission on counter-tariffs for U.S.-origin goods used in Canadian manufacturing, processing, and food and beverage packaging. This also includes goods supporting public health, healthcare, public safety, and national security.
• Processing vs. Retail Sale: The government has clarified that items subject to counter-tariffs qualify for remissions if imported for processing—not for direct retail sale.
  • Example: U.S. milk used as an ingredient in Canadian food manufacturing is eligible for remission; however, U.S. milk imported for retail sale is not.
• Financial Support: The federal government has also introduced the Large Enterprise Tariff Loan Program to provide financial relief to businesses affected by tariffs. Details here