Listeners, on November 5th, 2025, Canada and the United States remain locked in a heated tariff standoff that’s driving headlines across North America. Since President Trump returned to office in January, his administration has implemented a series of sweeping tariffs targeting Canadian imports, with the most recent executive orders putting up to 35% duties on Canadian goods that don’t comply with the USMCA—the Canada-U.S.-Mexico Agreement. That means, for some Canadian exporters, it’s now 35% at the border, with an additional 10% hike added just last month in response to a controversial Ontario ad featuring Ronald Reagan speaking out against tariffs, as reported by The Fulcrum.
The story doesn’t stop there—Canadian officials countered with their own tariffs, matching Washington’s approach. Canada now imposes up to 25% duties on U.S. goods, specifically targeting steel, aluminum, autos, and a range of consumer products. Retaliatory measures reached $29.8 billion Canadian, or nearly $21 billion U.S., hammering American exporters in sectors central to trade. While trade policy negotiations have been suspended, government sources in Ottawa maintain they’re open to renewed dialogue should Washington reconsider.
For listeners tracking the broader impact, the U.S. Treasury is reportedly collecting much more revenue from tariffs on Canadian imports than Canada gathers from American goods. The actual difference arises from wider coverage—more categories of Canadian goods get hit by higher U.S. rates, while Canada’s response has remained targeted and sector-specific. The Hamilton Project found that the U.S., as of August, was raising more than 1% of its GDP in tariff revenue, with a rough estimate of $12–15 billion coming from Canadian goods alone. Canadian customs revenue trails behind, reflecting the narrower focus.
Turning to policy headlines, Ottawa’s 2025 budget notes that despite most Canada-U.S. trade under the USMCA remaining tariff-free, pressure from new American tariffs is interfering with business investment and household confidence. The average U.S. tariff rate on Canadian goods now sits just over 5% for USMCA-compliant products, but can spike dramatically for non-compliant goods. Government economic forecasts warn that unresolved trade tensions are contributing to higher Canadian unemployment this year, peaking at 7.2% in the fourth quarter and weighing on GDP growth.
What does this all mean for Canadian businesses and consumers? Prices for imported American goods, as well as Canadian exports to the U.S., are rising. Some sectors are reporting supply chain disruptions and loss of market share. Ottawa briefly considered a new Digital Services Tax on American tech firms but pressed pause after U.S. objections, highlighting just how rapidly trade relations can shift.
In sum, as trade talks remain on hold, both governments continue collecting record amounts in tariffs, with the fiscal advantage clearly in Washington’s court. Stay tuned for more real-time updates as the tariff story evolves, and keep an eye out for breakthroughs that could finally get trade moving again.
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