Carney says Canada's trade with U.S. is mostly tariff-free. But that's not the whole story

It's become a common refrain when Canadian politicians are asked about retaliatory measures or negotiations in the ongoing trade war: 85 per cent of Canada's trade with the U.S. is "tariff-free."

Prime Minister Mark Carney said as much on Tuesday and again on Friday, when pressed for information about his next salvo in the dispute with the U.S. after President Donald Trump imposed 35 per cent tariffs on Canadian goods that aren't compliant with the Canada-U.S.-Mexico Agreement (CUSMA).

"We're in a situation right now where 85 per cent of our trade with the United States is tariff-free," Carney told reporters at a news conference in Trenton, Ont., on Friday.

But "85 per cent" only roughly describes Canada's exports to the U.S. which have the potential to qualify for exemptions under CUSM