Canada says US tariffs are unlikely to be lifted

Canada's finance minister François-Philippe Champagne said the United States appears unlikely to lift recent tariffs and described a baseline tariff as a 'price' for market access, following President Trump's State of the Union and a new 10% global tariff imposed under Section 122.

Canada's finance minister François-Philippe Champagne said a baseline tariff may be the price Canada pays to continue shipping goods to the United States. His remarks came after President Donald Trump's State of the Union, where the president discussed tariffs as a future revenue source. The comments also followed a US Supreme Court decision that found the previous sweeping tariff policy unlawful and the subsequent announcement of a new 10% global tariff under Section 122. Canada remains closely tied to the US market, which accounts for about 75% of Canadian exports. Key points: - François-Philippe Champagne said the American administration views there will be a price to access the American market, and he described Canada as "paying the lowest price." - US trade official Jamieson Greer said Canada may need to accept "some level of higher tariff" to do business with the United States and mentioned potential trade-offs such as access to dairy markets. - Canada has exemptions from some tariffs under the United States–Mexico–Canada Agreement (USMCA) but faces steeper tariffs on steel, aluminium and softwood lumber. - A 6-3 US Supreme Court decision found last April's sweeping tariff policy unlawful, and President Trump then announced a new 10% global tariff imposed under Section 122 of the 1974 Trade Act. - Canadian Prime Minister Mark Carney has said he wants to double Canada's non-US exports over the next decade, with a focus on industries such as metals and cars. Summary: The statements from Canadian officials and US trade representatives underscore a shift in tone around trade with the United States and point to tariffs as a practical factor for market access and export strategy. How long the new 10% tariff will remain in place and whether negotiations will change tariff levels is undetermined at this time.