Because Canadian government gives money to some industries to pay for tariffs. It's called Regional Tariff Response Initiative (RTRI).
But that still doesn't reduce the cost to US customers, it just means the Canadian businesses gets a subsidy to make up for reduced sales.
Based on my (limited) understanding of RTRI, they have very specific items they fund and pretty low overall impact to the trade balance ($1M per org and $1B over 3 years program total across all industries). From [1]:
----------
Productivity improvement:
- investing in digitization, automation, or technology to enhance business productivity and competitiveness
- reshoring production, research & development (R&D) operations, recruiting highly qualified personnel (HQP) and expertise
Market expansion and diversification:
- developing and diversifying markets to help businesses find new customers
- business support, market development and diversification, and guidance services (e.g., advice for businesses from a sectoral expert organization)
Strengthening supply chains and trade resilience:
- optimizing supply chain logistics and ensuring compliance with standards to gain market access and/or enhance sales
- strengthening domestic supply chains and facilitating internal trade to increase the resilience of businesses and reliability of domestic markets
----------
This $1B program — even if it all went straight to subsidizing tariffs on Canadian imports — would be a pretty small rounding error out of the total $200B raised through tariffs from the article.
If anything, RTRI funds are largely about efficiency and pivoting to new markets. While there may be some outcomes that result in producers being able to lower their export costs, they're not "paying for" US tariffs.
Edit: formatting.
--
1: https://www.canada.ca/en/prairies-economic-development/servi...