In March, Ottawa raked in over $1 billion in customs import duties—more than double what was collected during the same month last year. At first glance, that might seem like a win for Canada’s bottom line. But dig a little deeper and it’s clear who’s actually footing the bill: Canadian businesses and consumers.
The dramatic increase in revenue—$617 million more than last year—came on the heels of retaliatory tariffs Canada imposed on billions of dollars’ worth of American imports. These weren’t tariffs aimed at American exporters. They were costs passed directly onto Canadian importers and, eventually, to all of us through higher prices at the checkout counter.
The Liberal government had high hopes for these counter-tariffs, projecting during the last election campaign that they would bring in a staggering $20 billion over the course of a year. That number, however, seems more like a political talking point than a grounded fiscal expectation. Finance Minister François-Philippe Champagne recently downplayed the figure, calling it “a projection at a moment in time,” and pointed to the unpredictable nature of trade tensions.
But there’s a bigger question here: Are we really winning this trade war?
The truth is, retaliatory tariffs might score political points or give the illusion of standing up to Washington, but they rarely land punches where it hurts. U.S. manufacturers may lose a bit of market access, but it’s Canadian companies that face real, immediate pain—especially smaller firms that can’t absorb the additional costs.
And while the government counts its rising customs revenue, those extra dollars represent increased strain on our economy. Tariffs are taxes, plain and simple. And these taxes are being paid by Canadians.
It’s also concerning that the Liberals have chosen to skip the traditional spring budget. In a period of trade turbulence, transparency and fiscal planning are more critical than ever. Kicking the can down the road to a vague fall “update” only adds to the uncertainty for businesses already grappling with changing trade rules and volatile costs.
Canada should be pushing for smart, strategic trade solutions—not escalating tensions and relying on tariffs to pad government coffers. There’s nothing patriotic about policies that punish our own people.
Tariffs may make for good headlines, but they make for bad economics when the burden lands squarely on Canadian shoulders.
