Welcome to Canada Tariff News and Tracker. Today’s biggest developments center on ongoing tariff measures impacting Canada as the Trump administration continues to reshape U.S. trade policy in 2025. Since the start of Donald Trump’s current term, Washington has aggressively escalated tariff actions—known as “reciprocal tariffs” and “Section 232 tariffs”—raising U.S. tariff revenues to over $144 billion so far this year, nearly triple last year’s total, and pushing the nationwide average tariff rate from just over 2% to nearly 9% by June. The changes are sending shockwaves through America’s trade relationships, and Canada is right at the center.
According to Benzinga, Canada is urgently seeking new sectoral trade deals with the U.S., particularly for steel and aluminum, to cushion the impacts of these ongoing tariffs. Canada's Industry Minister, Mélanie Joly, warned that if negotiations stall, the country could face devastating steel plant closures. The steel industry, valued at $11 billion and providing more than 100,000 jobs, is under severe threat from the Trump administration’s expanded tariffs on metals and a suite of additional restrictions targeting automobiles and other sectors. Joly, alongside Prime Minister Mark Carney, recently traveled to Washington to push for speedy progress. While Trump declared Canada would leave talks “very happy,” no concrete deals emerged. Both sides have now instructed officials to intensify negotiations, with hopes of breakthrough agreements in steel, aluminum, and energy looming.
The ongoing U.S. drive to strengthen its domestic auto industry is another major concern for Canadians. Auto-manufacturing is deeply interconnected across the border, and new tariffs or policies threatening this relationship could result in significant job losses. Unifor—Canada’s largest private-sector union—has warned Prime Minister Carney not to bargain away auto sector interests; otherwise, organized labor will resist any resulting deals. Meanwhile, companies like Stellantis, Ford, and GM—traditionally operating seamlessly across the U.S.-Canada border—are reassessing their investments, with Stellantis alone pledging $10 billion toward new U.S. facilities in response to U.S. policy shifts.
Trade data shows the pain is real for both sides. Caixin Global reports that as of mid-2025, U.S. tariffs on Canada sit just below 5%, lower than the punitive levels facing China but still much higher than in past years. Both U.S. imports from and exports to Canada have fallen, making Canada and China unique among America’s top trading partners where two-way trade is shrinking. The pressure is forcing Canada to explore new partnerships in Asia while fighting for fair terms closer to home.
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