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Information on U.S. Tariffs on Canada and the Canadian Response

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Imposed U.S. Tariffs:
Since March 4, 2025, the United States of America has been imposing a 25% tariff on all Canadian goods entering their country, with the exception of oil, gas, and energy products, which are subject to a 10% tariff. This is part of a broader tariff package from the U.S. that includes a 25% tariff on steel and aluminum imports from all countries, including Canada, effective March 12, 2025. These tariffs threaten thousands of jobs and businesses.

 

Canada’s Counter-Tariff Response:
Canada's response includes tariffs on $30 billion in goods imported from the U.S., effective as of March 4, 2025. The list includes products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and certain pulp and paper products.

Finance Minister Dominic LeBlanc also announced that, should the U.S. continue to apply unjustified tariffs on Canada, the government intends to impose additional countermeasures on $125 billion in imports from the U.S., drawing from a list of goods open for a 21-day comment period, which would bring the scope of countermeasures to a total of $155 billion worth of products. The list includes products such as electric vehicles, fruits and vegetables, beef, pork, dairy, electronics, steel, aluminum, trucks, and buses.

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Canada Nontariff Counter Measures

In addition to Canadian tariffs on U.S. products, Canada has implemented several non-tariff countermeasures:

  • Ontario Premier Doug Ford has expressed willingness to impose a 25% surcharge on electricity exports to New York, Michigan, and Minnesota, with the option to increase the surcharge or cut off power completely if necessary.

  • Ontario has banned U.S. companies from participating in $30 billion worth of annual government procurement. Premier Ford has also ended Ontario's deal with Elon Musk's Starlink.

  • Additionally, the British Columbia Liquor Board, the Manitoba Liquor & Lotteries Corporation, the Société des alcools du Québec, the Nova Scotia Liquor Commission, and the Alcohol and Gaming Commission of Ontario (which is the largest alcohol buyer globally) will remove all U.S. products from their shelves.

  • Alberta has also announced a retaliatory plan.

 

Timeline of Tariffs

  • March 4, 2025: U.S. imposes 25% tariff on most Canadian goods, 10% on energy.

  • March 5, 2025: Canada imposes $30 billion in retaliatory tariffs

  • March 12, 2025: U.S. additional 25% tariffs on Canadian steel and aluminum takes effect

  • March 25, 2025: The 21-day comment period ends before additional $125 billion worth of tariffs take effect.

 

Impact on Canadians:

 

1. Industry and Businesses:

  • Export-oriented businesses will be most affected, but the toll will depend on how hard it becomes for U.S. buyers to find alternatives, and whether those buyers are prepared to shoulder the added costs.

  • Heavily integrated industries like the automotive sector will be particularly disrupted because parts often cross the border several times before a vehicle is completed.

  • S&P Global said sectors that process resources would likely be most affected, meaning industries like paper and plastic production as well as machinery and chemical manufacturing.

 

2. People:

  • Tariffs effect job security, the number of jobs available, potentially increase interest rates, devalue the Canadian dollar, and cause inflation. These things will all directly impact Canadians as the cost-of-living increases.

 

Official Resources


For more information, visit:

 

Canadian sources:

  1. Canada announces robust tariff package in response to unjustified U.S. tariffs. (2025, March 4). Government of Canada. https://www.canada.ca/en/department-finance/news/2025/03/canada-announces-robust-tariff-package-in-response-to-unjustified-us-tariffs.html

  2. List of products from the United States subject to 25 per cent tariffs. (2025, February 2). Government of Canada. https://www.canada.ca/en/department-finance/news/2025/02/list-of-products-from-the-united-states-subject-to-25-per-cent-tariffs-effective-february-4-2025.html

  3. Navigating tariffs. (2025, March 4). KPMG. https://kpmg.com/ca/en/home/market-insights/geopolitical-shifts.html

  4. Process for requesting remission of tariffs that apply on certain goods from the U.S. (2025, March 4). Government of Canada. https://www.canada.ca/en/department-finance/programs/international-trade-finance-policy/process-requesting-remission-tariffs-that-apply-on-certain-goods-us.html

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American sources:

  1. United States international Trade Commission. (2025). Harmonized Tariff Information. https://www.usitc.gov/harmonized_tariff_information

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Statements from officials:

  1. Statement by the Prime Minister on unjustified U.S. tariffs against Canada. (2025, March 3). Prime Minister of Canada. https://www.pm.gc.ca/en/news/statements/2025/03/03/statement-prime-minister-trudeau-on-unjustified-us-tariffs-against-canada

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Bank of Canada evaluation of potential impacts of US tariffs:

  1. Evaluating the potential impacts of US tariffs. (2025, January). Bank of Canada. https://www.bankofcanada.ca/publications/mpr/mpr-2025-01-29/in-focus-1/

 

This information was last updated on March 13, 2025.

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