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Ottawa’s decision to extend the federal fuel-tax suspension just days before a new round of counter-tariffs takes effect suggests that the government has finally done its homework on affordability.

CHARLEBOIS: Ottawa cuts taxes at the pump, then adds them to the grocery bill Back to video

The federal excise tax will remain suspended until January 31, 2027, saving motorists 10 cents per litre on gasoline and four cents per litre on diesel. It will return at half its normal rate for February and March before being fully restored in April. For the food sector, the diesel measure is particularly important. Almost everything Canadians eat spends time on a truck, while farmers, processors, wholesalers and retailers all depend heavily on energy.

The timing is no coincidence. On September 8, Canada will impose counter-tariffs of 15, 25 and 50% on $27.6 billion worth of American goods. By extending fuel-tax relief, Ottawa is effectively removing one source of inflationary pressure just as it introduces another.

That is more coherent than what Canadians witnessed last year.

On March 4, 2025, the Trudeau government imposed 25% counter-tariffs on selected American foods and other consumer goods. At the time, our Agri-Food Analytics Lab was among the very few voices warning that these tariffs would ultimately function as a tax on Canadians.

Canadians paid part of retaliation bill

Tariffs are collected at the border, but their economic cost rarely stays there. Importers may........

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