Canada collected $3B from U.S. counter-tariffs before dropping most of them

Canada brought in just over $3 billion in revenue from U.S. counter-tariffs before the federal government lifted the majority of them in September, according to data from the Finance Department — far short of the $20 billion the Liberals had projected in their spring election platform.

The counter-tariffs were introduced as part of Canada’s retaliatory measures against U.S. trade actions, but Prime Minister Mark Carney decided to remove most levies on CUSMA-compliant imports to encourage progress in stalled trade talks with Washington.

The decision comes as Ottawa prepares to release its latest federal budget on Tuesday, which is expected to show a larger deficit than forecasted in the last fiscal update.

“The value of those retaliations was diminishing,” Carney told reporters during a summit in Malaysia, defending the decision despite no final deal with the U.S.
“There is a cost at home for those tariffs… and those costs build up over time.”

Government says move aimed to help Canadian industry

Finance Minister François-Philippe Champagne acknowledged that removing the tariffs would impact federal revenues but said the government’s priority is supporting domestic industries.

“We always need to adapt and review our posture,” Champagne said. “First and foremost, what we’re doing is to support Canadian industry.”

The Finance Department said the $3-billion figure does not include money that was later redistributed to affected businesses. Earlier this year, Ottawa introduced a six-month relief program for several goods — which was still active when most tariffs were lifted.

Economists question revenue shortfall

Bill Robson, CEO of the C.D. Howe Institute, said the shortfall highlights the risk of using tariffs as a revenue tool.

“It’s not helpful to have a big revenue shortfall,” he said. “We do need to raise revenue, but tariffs are a very damaging way of doing it.”

Steel producers blame exemptions

Catherine Cobden, president of the Canadian Steel Producers Association, said she wasn’t surprised by the limited revenue collection, citing numerous exemptions that reduced the government’s intake.

While tariffs on steel and aluminum remain, many other goods were exempted or refunded, costing Ottawa an estimated $78 million in foregone revenue.

“We’ve been calling on the government to focus remissions only on products not made in Canada,” Cobden said. “The remission process in our country is broken — that’s why revenue isn’t matching projections.”

Champagne defended the government’s approach, saying all exemptions were reviewed “very diligently.”

More details expected in federal budget

The Finance Department confirmed that full tariff collection data will be included in next week’s budget release.

As the government faces pressure over spending and an expanding deficit, critics argue that the unexpected tariff shortfall raises further questions about the Liberals’ fiscal management and trade strategy heading into the next budget cycle.

LCBO hides U.S. liquor stockpile details, calling them ‘cabinet confidence’

Ontario’s Liquor Control Board (LCBO) is refusing to reveal what’s in its massive $79.1-million stockpile of U.S. alcohol products, removed from store shelves earlier this year as part of a trade dispute with the United States — citing “cabinet confidence.”

The Crown corporation took 64 days to respond to a freedom-of-information request from CBC News, exceeding the legal limit by more than a month. When it finally released 50 pages of records, nearly all information on the amount, fate, and cost of the stored liquor was heavily redacted.

While other provinces — including Quebec, New Brunswick, and Nova Scotia — disclosed their American liquor inventories, Ontario’s documents kept most details hidden, including how much has expired or been destroyed.

Government defends secrecy

A brief mention in the LCBO’s 2024–25 financial statements listed a $2.9-million provision for expiring product, but the supporting data was withheld.

Ontario’s Finance Ministry said the secrecy stems from government direction following U.S. tariff threats.

“In the face of President Trump’s unjustified tariffs and tariff threats, our government directed the LCBO to remove U.S.-made alcohol from their shelves,” said ministry spokesperson Colin Blachar.
“Products remain off LCBO shelves and are currently held in storage. The vast majority have a long shelf life, so very minimal product has expired.”

Experts call the move ‘ludicrous’

Transparency experts are calling the LCBO’s justification “bizarre and outrageous.”

James Turk, a researcher at Toronto Metropolitan University, said cabinet confidence is meant to protect internal political deliberations — not operational data.

“To claim that inventory levels of American wine and liquor are a ‘cabinet confidence’ is ludicrous,” Turk said.
“They have no competitors. LCBO has a monopoly on alcohol sales in Ontario. This is clearly a misuse of the concept.”

Turk compared the case to the Ford government’s earlier refusal to release ministerial mandate letters, which was ultimately upheld by the Supreme Court of Canada, and pointed to a “pattern of secrecy” in Ontario governance — from the Greenbelt scandal to a $2.5-billion job training fund lacking transparency.

Opposition calls for accountability

Ontario NDP Leader Marit Stiles accused the government of excessive secrecy, saying the 50 redacted pages show a troubling trend.

“Ontarians have a right to know what decisions are being made and why,” Stiles said.
“Again and again, this government hides information from people. What are they afraid of?”

CBC News has since appealed the LCBO’s decision to the Information and Privacy Commissioner of Ontario, seeking a full release of the records.

Until then, the contents of Ontario’s $79-million liquor cellar — and why they’ve become a matter of “cabinet confidence” — remain tightly sealed.