Listeners, welcome back to Canada Tariff News and Tracker. On this November 14th, 2025, the tariff landscape between the US, the Trump administration, and Canada is more contentious than at any point in recent memory.
In August 2025, the Trump administration raised the tariff rate for Canadian goods that don't qualify under the North American trade pact to 35%, up from 25%. This hike is directed at non-USMCA-qualifying exports, a category that’s broadly defined and increasingly scrutinized. As a result, Canadian exporters across various industries have scrambled to clarify compliance, with lingering fears about future retroactive penalties, as reported by the Regulatory Affairs Professionals Society.
Automakers have been especially hard hit. The Financial Post covers how vehicles from outside North America now account for over a third of all car sales in Canada, a shift driven by US and Canadian tariffs that have disrupted what used to be a tightly integrated North American auto market. Canadian-made vehicles, much of which were exported to the US, have seen their US market share plummet from roughly 61% to below 49% in under two years. Automakers like GM and Stellantis have stalled or slashed investments in Canadian facilities, and the overall climate is one of deep uncertainty. Union leaders in Canada are urging Ottawa to apply counter-restrictions and reconsider continued participation in the trade agreement if US tariffs persist.
According to Wikipedia articles and trade analysts, the average applied US tariff rate hit an astonishing 27% earlier this year—the highest since the 1920s—before settling around 18% this fall. Under President Trump, Section 232 of the Trade Expansion Act has been wielded aggressively, with steel, aluminum, and copper tariffs reaching 50% and a broad 25% tariff slapped on imported cars, which includes Canadian-made automobiles unless they meet strict USMCA rules of origin.
New Section 232 tariffs began on November 1, applying a 25% duty on medium and heavy vehicles as well as key truck parts from Canada, unless those parts clearly qualify under USMCA regulations. While buses are taxed at a lower 10%, auto parts that don't meet strict rules of origin now face full tariffs. However, steel and aluminum sourced and processed in Canada may—if all steps of smelting and casting are domestic—qualify for a reduced 25% rate, still a hit compared to earlier years of tariff-free flow.
Politically, the relationship hit a low in late October when President Trump abruptly ended trade talks with Canada amid tensions over what he called hostile messaging from Ontario’s provincial government. The Financial Post notes that most Canadians see little hope for any relief on tariffs before the United States-Mexico-Canada Agreement comes up for review mid-2026. Experts warn the review is likely to trigger a full renegotiation.
Travel and consumer sentiment reflect the fallout, with GV Wire reporting that Canadian travel to the US has now declined for a tenth month straight, making clear these tariffs have everyday consequences for individuals as well as industries.
Listeners, that’s the latest on US tariffs and the Trump administration’s evolving relationship with Canada. Thank you for tuning in, and don’t forget to subscribe to stay current with every development.
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