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Those exemptions mean Canada’s tariff-rate increase on the U.S. is “nearly zero,” according to calculations by Oxford.
“It’s a very strategic approach from a new prime minister to really say, ‘We’re not going to have a retaliation,’” Tony Stillo, Oxford’s director of Canada economics, said in an interview. “It’s a strategic play on the government’s part to not damage the Canadian economy.”

U.S. President Donald Trump meets with Prime Minister Mark Carney in the Oval Office of the White House, Tuesday, May 6, 2025, in Washington. Photo by Evan Vucci /AP
Retaliatory tariffs on some U.S. goods remain, including on food items such as orange juice, alcohol and coffee, as well as clothing and cosmetics.
Carney fought and won an election last month by convincing millions of Canadian voters that he was the best candidate to handle a trade war with the U.S., which buys about three-quarters of Canada’s exports.
The prime minister said Canada will have to strengthen its own domestic economy — partly through government-backed infrastructure and housing initiatives — and seek out new trade and security alliances with other countries. But he’s also made it clear that he doesn’t necessarily endorse “dollar for dollar” retaliation, which former Prime Minister Justin Trudeau said he supported in “principle.”
A spokesperson for Finance Minister Francois-Philippe Champagne, whose department is responsible for administering the tariffs, did not reply to a request for comment on the Oxford report.