Ottawa Gains $617 Million in Extra Import Duties in March as Counter-Tariffs Impact U.S. Trade

Ottawa has seen a significant surge in revenue from import duties, collecting an additional $617 million in March compared to the same month last year, as new counter-tariffs targeting U.S. goods came into force. The federal government’s latest fiscal monitor report, released recently, revealed that revenues from customs import duties soared past the $1 billion mark this March—more than twice the amount recorded a year prior.

This dramatic increase follows the federal government’s implementation of retaliatory tariffs on a wide array of American products. The move was a direct response to tariffs first imposed by the United States, and aims to exert pressure on Washington by making it more costly for Canadian businesses to import affected U.S. goods. The costs of these tariffs are shouldered primarily by Canadian importers, many of whom have warned about the impact on their bottom lines and the potential for higher prices for consumers.

During the most recent federal election campaign, the Liberal Party estimated that these counter-tariffs could generate as much as $20 billion in extra revenue over the course of one year. However, Finance Minister François-Philippe Champagne recently clarified that the $20 billion figure was “a projection at a moment in time,” acknowledging that the tariff landscape remains volatile and subject to change as trade negotiations between Canada and the U.S. continue.

In a signal of ongoing fiscal planning, the federal government has opted not to release a full spring budget but has committed to providing a fiscal update later in the fall. This update is expected to offer insight into how much the counter-tariffs have actually contributed to government coffers, and what impact the rapidly evolving trade situation is having on the broader Canadian economy.