Listeners, welcome to Canada Tariff News and Tracker. It’s Friday, July 25, 2025, and we’re bringing you the latest on U.S. tariffs, President Trump’s evolving trade strategy, and how it all affects Canada.
At the center of the news this week is President Trump’s “America First Trade Policy.” On his first day back in office, Trump announced sweeping tariffs of 25 percent on all imports from Canada and Mexico, implemented on February 4—with no exemption even for products that qualify under the USMCA trade deal, which was originally intended to prevent exactly these types of disruptions. Trump described these measures as justified by a national emergency tied to illegal migration and fentanyl supply chains, calling for the tariffs to remain until both Canada and Mexico take what he deems “sufficient action” to address these crises, according to BDO’s tariff policy coverage.
The White House has since raised the stakes. Trump’s latest letter to Canadian Prime Minister Mark Carney threatened tariffs as high as 35 percent on certain Canadian exports, set to kick in on August 1 if a new agreement can’t be struck. However, White House officials have stated that goods compliant with the Canada-U.S.-Mexico Agreement could still avoid some of these new tariffs, as reported by CTV News.
While all eyes are on that deadline, Canada’s steel, aluminum, auto, lumber, copper, and energy exports are all feeling the crunch. The National Post reports Canadian steel has already been facing 50 percent U.S. tariffs since June, a drastic jump up from the original 25 percent level. The Canadian Steel Producers Association says production dropped 30 percent countrywide even before the latest increase. With the American market accounting for 90 percent of Canadian steel exports, the new tariffs are hitting industry hard.
Canadian officials are in Washington trying to resolve the crisis, but the chances of a deal by the deadline appear slim. Dominic LeBlanc, Canada’s trade minister, said negotiations are ongoing but complex, and the government will not accept any deal that does not protect Canadian workers and the economy. Canada’s ambassador to the U.S., Kirsten Hillman, confirmed that Ottawa won’t rush just to meet the deadline, echoing Prime Minister Carney’s call to hold out for a “right deal,” according to the CBC.
On Capitol Hill, bipartisan resistance to Trump’s blanket tariffs is growing. Senator Tim Kaine and colleagues have introduced the CANADA Act, a bill aiming to exempt U.S.-owned small businesses from these tariffs. Lawmakers from both sides argue the tariffs have supercharged costs, threatened jobs, and driven up consumer prices. Senator Peter Welch of Vermont, whose state heavily depends on trade with Canada, stresses that protecting Main Street businesses from the “chaotic” impact of Trump’s trade wars is critical, as detailed in VermontBiz.
While negotiations continue with American lawmakers, Canadian officials say most Canadian exports may dodge the harshest new tariffs as long as they remain compliant with USMCA rules, though much remains uncertain. As both sides dig in with their demands, it’s clear that the U.S.-Canada trade relationship faces one of its most turbulent chapters in years.
Thank you for tuning in to Canada Tariff News and Tracker. Don’t forget to subscribe for weekly updates on all the latest tariff news and trade developments. This has been a Quiet Please production, for more check out quietplease dot ai.
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