For listeners tracking the latest on tariffs between the US and Canada, here’s what you need to know right now.

Since October 1st, President Trump has imposed a sweeping new round of tariffs targeting Canadian goods. Kitchen cabinets and bathroom vanities now face a massive 50% duty, while upholstered furniture has been hit with a 30% tariff. The official line is that these moves are meant to protect US manufacturing and national security, but the biggest impact so far has been a sharp price increase for American consumers, especially those looking to renovate or furnish their homes. American retailers and builders are reporting slower sales and strained supply chains, reversing the intended economic revival.

Canada has not sat still. Rather than escalate with further retaliatory tariffs, Ottawa is leveraging financial support and export incentives for local industries affected by US trade measures. The Canadian government pledged 400 million dollars in relief loans to steel producers last month alone, with Ontario adding another 100 million. Facing pressure from both Trump’s tariffs and rising global uncertainty, Canadian manufacturers are leaning into their geographic advantage, using shorter shipping routes to the American Midwest and Northeast. By focusing on remission of tariffs on imported inputs and new tax credits, Canada is cushioning the blow for its own businesses while also looking to corner market share lost by other foreign competitors.

Canadian Prime Minister Mark Carney took a firm stand at the Council on Foreign Relations in New York, declaring that Canada would “chart its own path” by re-engaging with China and doubling down on partnerships with Europe and Asia. This is a direct contrast to Trump’s use of tariffs as leverage over every major trading partner, Canada included. Carney’s vision is for Canada to be a bridge between Europe, Asia, and North America, taking part in more multilateral trade frameworks such as the CPTP and the Canada-EU Free Trade Agreement. With Ottawa siding with rules-based trade and Washington putting up walls of tariffs, the gap between the two countries has never seemed wider.

The latest figures from RBC Wealth Management show that as of August 2025, the weighted average applied US tariff rate on imports sits around 17 to 19 percent, the highest since the 1930s, though effective rates are somewhat lower at about 10.5 percent. Notably, nearly 90 percent of Canadian imports into the US remain exempt under the USMCA free trade agreement, but sectors outside that deal, like softwood lumber, face severe pain. On September 29th, Trump boosted tariffs on Canadian softwood lumber and derivatives to a total of 45.19 percent, combining existing anti-dumping duties and a new 10 percent tariff. The hospitality and construction sectors on both sides of the border are feeling the pinch.

For Canadian consumers, Trump’s rhetoric and the fresh trade barriers have sparked a growing movement to buy Canadian and boycott US goods. Recent surveys show that 71 percent of Canadians plan to reduce purchases of American products this year. Trade tensions have even spilled over into the spirits market: since March, provinces like Ontario and Quebec pulled American alcohol from shelves in retaliation against a 25 percent US tariff, causing US spirits sales in Canada to plunge by more than 60 percent in just weeks.

Looking ahead, uncertainty remains. The Supreme Court is expected to hear a major case on the legality of Trump’s tariffs this November. Meanwhile, Canada’s message is clear: the United States is no longer its only game in town. With diversification, new free trade deals, and a focus on global partnerships, Canada is rewriting the script and stepping out of America’s shadow.

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