Listeners, today on Canada Tariff News and Tracker, we break down the latest headlines and developments on U.S. tariffs, the Trump administration, and what it all means for Canada.
Over the past year, President Trump has ramped up tariffs worldwide, with Canadian imports a main target. According to the Council on Foreign Relations, starting in February 2025, the United States imposed 25 percent tariffs on Canadian steel and aluminum, followed by a second wave in March with a 35 percent tariff on many Canadian imports, including auto parts. Canada immediately responded, launching its own set of retaliatory tariffs on U.S. products and initiating a World Trade Organization dispute over the measures.
The tariffs have created real economic pain. According to Yale’s Budget Lab, the average effective U.S. tariff rate soared from 2.4 percent pre-2025 to a staggering 17.9 percent by September, the highest since the 1930s. These new import taxes are expected to cost U.S. households an average of $2,400 more by the end of the year, with lower-income families hit the hardest, especially on essential goods.
Canadian officials have not stood still. In March, Ontario imposed a 25 percent surcharge on electricity exports to Michigan, Minnesota, and New York, while Ottawa introduced $20.9 billion worth of retaliatory tariffs targeting American goods. Canada's manufacturing industry felt the squeeze, as the U.S. tariffs disrupted cross-border supply chains. Despite these challenges, MSCI reports that Canada’s manufacturing sector added nearly 106,000 full-time jobs recently, signaling resilience amidst uncertainty.
Trade negotiations between Trump and Canadian Prime Minister Andrew Carney broke down in June, when Trump ended talks over Canada’s three percent digital services tax, leading to more uncertainty and tension. Trump continued to threaten additional tariffs on Canadian lumber, dairy, and autos, even floating the possibility of a 50 percent tariff on Canadian steel and aluminum in July, then suspending it after Ontario dropped its own surcharge.
Looking at tariff rate news, Trump issued a letter in July announcing a sweeping 35 percent tariff on Canadian imports effective August 1, 2025, except for goods already compliant under the USMCA agreement. On September 1, Canada lifted its 25 percent counter-tariffs on USMCA goods, but maintained the 35 percent levy on non-USMCA products, including steel, aluminum, and auto parts.
Both countries continue to wrangle over tariffs, with talks expected to resume as Canada eventually agreed to suspend its digital services tax. The ongoing trade spat is injecting volatility into markets and reshaping the consumer landscape on both sides of the border.
Listeners, that’s the latest update on Canada-U.S. tariffs under the Trump administration. Thanks for tuning in. Be sure to subscribe for more insights and headlines.
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