Thanks for tuning in to Canada Tariff News and Tracker. Today is October 22, 2025, and we’re bringing listeners the latest on tariffs, US trade policy, and headline developments centered on Canada and President Trump.
A major headline: effective November 1st, the US government is enacting a new 25 percent tariff on heavy and medium-duty trucks imported into the country. This applies to classes III through VIII trucks and their parts sourced from Canada. For buses, the new tariff rate is 10 percent. One key point for manufacturers and logistics: truck and bus parts imported directly from Canada will remain duty-free if they qualify under the USMCA, but complete vehicles do not get the same break. According to PCB Customs Brokers, these new tariffs are specifically carved out from other sectoral tariffs currently imposed, such as those on steel and aluminum. If trucks are assembled in the US with Canadian parts, companies may qualify for an offset based on the manufacturer's suggested retail price, but only if tariffs paid on the parts reach the required threshold.
The White House says these new tariffs will not be added to pre-existing tariffs on steel, aluminum, copper, or autos, nor will they be subject to reciprocal tariffs currently levied on Canadian, Mexican, Brazilian, or Indian goods. However, US tariffs on Canadian goods more broadly have reached a high point this year. As reported by PeopleForBikes, beginning August 1, the Trump administration raised tariffs on many Canadian imports to a flat 35 percent, with some limited relief for USMCA-compliant goods. Additionally, on February 4, 2025, a major round of new tariffs went into effect—25 percent on all products from Canada and Mexico and a 10 percent tariff on most Chinese goods. The White House says energy imports from Canada are subject to a lower 10 percent tariff, but essentially all other Canadian-origin goods face this new layer of cost.
On the diplomatic front, Prime Minister Mark Carney says Canada is in “intensive negotiations” with President Trump’s team in an effort to secure tariff relief, especially for steel, aluminum, and energy. The Globe and Mail reports that a US-Canada deal could be signed as soon as the upcoming APEC summit, and Carney has noted his optimism for breakthroughs even as the Trump administration pushes forward with auto tariffs that deeply affect Canada’s manufacturing sector. Carney also confirmed that roughly 85 percent of current bilateral trade remains tariff-free under CUSMA, but the new sectoral tariffs are causing pain—higher business costs and job losses in Canada’s heavy industry and manufacturing. Food price inflation has also seen an uptick, attributed to both direct tariffs and retaliatory Canadian measures on US goods.
Listeners should also be aware that the US government shutdown, underway since October 1, continues to disrupt the collection of key trade data. Statistics Canada has warned that with no September data from US customs, trade reporting on Canadian exports may be delayed, making it harder for policymakers to track the impact of these evolving tariffs.
That wraps up today’s update on Canada tariffs. Thank you for tuning in to Canada Tariff News and Tracker. Be sure to subscribe so you never miss an update. This has been a quiet please production, for more check out quiet please dot ai.
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