Welcome to Canada Tariff News and Tracker. Today is October 3, 2025, and there is significant movement on cross-border tariffs between Canada and the United States—with implications for exporters, importers, and consumers alike.
The big headline: President Donald Trump has imposed a 25% tariff on all heavy-duty, or Class 8, trucks and related components imported from outside the United States, effective since October 1. In a post on his Truth Social platform, Trump stated this move is designed to protect American heavy truck manufacturers from global competition and cited national security as justification. According to industry reports, this latest levy follows earlier tariffs on steel and aluminum that have already increased raw material costs by 9% to 12% and truck production costs by up to 24% in 2025. Truck makers and carriers are deeply concerned, warning that the U.S. lacks enough domestic supply for critical parts like transmissions and axles, making these new tariffs especially disruptive for the industry. While some manufacturers support tariffs on fully built trucks, they caution that higher tariffs on parts could add billions in costs and stifle investment.
For Canada, the situation is complicated by the United States-Mexico-Canada Agreement, or USMCA. The White House has not clarified whether trucks or parts made in Canada will be exempt from the new 25% tariff, leaving Canadian manufacturers and exporters in limbo. According to Global News, Canada is also facing new or increased tariffs on lumber, furniture, and, soon, heavy trucks and pharmaceutical products. Canadian officials, including Trade Minister Dominic LeBlanc, have expressed confidence that a resolution can be reached, pointing to growing domestic pressure in the U.S. from senators, governors, and business leaders who are also feeling the pinch from these tariffs. However, LeBlanc has made it clear Canada will not settle for across-the-board tariffs in exchange for dropping targeted Canadian levies on softwood, steel, and aluminum, and rejects the notion that protecting supply management in agriculture could derail broader trade talks.
The economic stakes are high. Canada has the lowest average tariff rate of any U.S. trading partner, with 85% of Canada-U.S. trade flowing tariff-free, according to the Prime Minister’s office. But the landscape is shifting. The U.S. Trade Representative is now collecting public comments on the USMCA ahead of a major joint review in 2026, which could reshape North American trade rules. For now, USMCA-compliant goods still receive preferential treatment, but the future of these exemptions is uncertain. The relationship between Canada and the U.S. has fundamentally changed, according to Canadian officials, and the old rules may no longer apply.
As this tariff drama unfolds, Canadian businesses should stay alert. Prime Minister Carney is making a working visit to Washington, D.C., reflecting the urgency of these talks. The political opposition in Canada has criticized the government’s approach, arguing that negotiating with an administration that keeps moving the goalposts makes for a frustrating and unpredictable environment.
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