Mercedes demonstrated surprising pace after bringing a front wing update to Canada, with Lewis Hamilton and George Russell setting the session alight with purple sector times.
Russell claimed a stunning pole position by the finest of margins, setting the exact same time as Max Verstappen.
However, the Dutchman was summoned to the stewards after qualifying, investigated for a pit lane infringement in an alleged breach of Article 34.8 of the Sporting Regulations.
Will Max Verstappen be penalised in Canada?
Red Bull assumed Verstappen had crossed the solid white line separating the fast lane from the working lane, and therefore followed Article 34.8
However, the stewards determined this assumption was 'inaccurate' arguing Verstappen was not in the fast lane at the start of the session.
The stewards decided no further action would be taken regarding the incident, satisfied that Verstappen did not impede the cars already in the fast lane and blended into the fast lane when it was deemed safe to do so.
Verstappen will hold onto to P2 for Sunday's race, with the Dutchman pleased with Red Bull's result in qualifying despite losing out to Mercedes.
"It is how it is, right? I think overall we still had a good qualifying. The whole weekend has been still a bit tricky for us, but to be P2, I’d take it,” Verstappen said.
"Going into qualifying I would have definitely taken that. So that it was that close at the end makes it really exciting for tomorrow as well.
Sergio Perez on the other hand endured a woeful qualifying, failing to get into Q2 for the second consecutive race weekend, and will start the race in P16.
Red Bull have recently renewed Perez’s contract until 2026, as a vote of confidence in the Mexican driver.