Information on U.S. Tariffs on Canada and the Canadian Response

Imposed U.S. Tariffs:
Since March 4, 2025, the United States of America has been imposing a 25% tariff on all Canadian goods entering their country, with the exception of oil, gas, and energy products, which are subject to a 10% tariff. This is part of a broader tariff package from the U.S. that includes a 25% tariff on steel and aluminum imports from all countries, including Canada, effective March 12, 2025. These tariffs threaten thousands of jobs and businesses.

Canada’s Counter-Tariff Response:
Canada's response includes tariffs on $30 billion in goods imported from the U.S., effective as of March 4, 2025. The list includes products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and certain pulp and paper products.

The Canadian government intends to impose additional countermeasures after a 21-day comment period beginning April 2, 2025, if all tariffs imposed by the U.S. are still in affect. This will effect $125 billion in imports from the U.S., which would bring the scope of countermeasures to a total of $155 billion worth of products. In addition to the tariffs already in effect, Canada has announced, starting March 13, 2025, another $29.8 billion in imports from the U.S will be subject to a 25% tariff.

Canada Nontariff Counter Measures

In addition to Canadian tariffs on U.S. products, Canada has implemented several non-tariff countermeasures:

Ontario Premier Doug Ford has expressed willingness to impose a 25% surcharge on electricity exports to New York, Michigan, and Minnesota, with the option to increase the surcharge or cut off power completely if necessary.
Ontario has banned U.S. companies from participating in $30 billion worth of annual government procurement. Premier Ford has also ended Ontario's deal with Elon Musk's Starlink.
Additionally, the British Columbia Liquor Board, the Manitoba Liquor & Lotteries Corporation, the Société des alcools du Québec, the Nova Scotia Liquor Commission, and the Alcohol and Gaming Commission of Ontario (which is the largest alcohol buyer globally) will remove all U.S. products from their shelves.
The Government of Canada and Canada’s premiers agreed to build on the foundational work of the Committee on Internal Trade and strengthen Canada’s domestic economy by reducing barriers to internal trade and labour mobility across the country.

Impact on Canadians:

1. Industry and Businesses:

Businesses can expect reduced demand from U.S. buyers as production costs increase and reduced investment into businesses as investors worry about the uncertainty caused by a trade war.
Heavily integrated industries like the automotive sector will be particularly disrupted because parts often cross the border several times before a vehicle is completed.
S&P Global said sectors that process resources would likely be most affected, meaning industries like paper and plastic production as well as machinery and chemical manufacturing.

2. People:

Tariffs effect job security, the number of jobs available, potentially increase interest rates, devalue the Canadian dollar, and cause inflation. These things will all directly impact Canadians as the cost-of-living increases. The most noticeable difference for consumers in coming weeks will be an increase in grocery prices.

Official Resources

For more information on timelines, products impacted, and the Government of Canada's response to tariffs, please see:

Canadian resources:

Canada announces robust tariff package in response to unjustified U.S. tariffs. (2025, March 4). Government of Canada. https://www.canada.ca/en/department-finance/news/2025/03/canada-announces-robust-tariff-package-in-response-to-unjustified-us-tariffs.html
List of products from the United States subject to 25 per cent tariffs. (2025, February 2). Government of Canada. https://www.canada.ca/en/department-finance/news/2025/02/list-of-products-from-the-united-states-subject-to-25-per-cent-tariffs-effective-february-4-2025.html
Navigating tariffs. (2025, March 4). KPMG. https://kpmg.com/ca/en/home/market-insights/geopolitical-shifts.html
Process for requesting remission of tariffs that apply on certain goods from the U.S. (2025, March 4). Government of Canada. https://www.canada.ca/en/department-finance/programs/international-trade-finance-policy/process-requesting-remission-tariffs-that-apply-on-certain-goods-us.html
Support for Canadians workers and businesses, (2025, March 4th) Government of Canada. https://www.canada.ca/en/department-finance/news/2025/03/fighting-for-canadian-workers-and-businesses.html
John Paul Tasker · CBC News · (March 6, 2025) Trump pausing tariffs on some Canadian goods until April 2

American resources:

United States international Trade Commission. (2025). Harmonized Tariff Information. https://www.usitc.gov/harmonized_tariff_information
Trump proceeds with tariffs on imports from Canada and Mexico. (March 3rd, 2025) The White House. Fact Sheet: President Donald J. Trump Proceeds with Tariffs on Imports from Canada and Mexico – ]

Timeline of important dates:

U.S.-Canada Tariffs: Timeline and key dates and documents (March 11, 2025)-Blakes.com. U.S.–Canada Tariffs: Timeline of Key Dates and Documents | Blakes
AP news. (2025, March 10). Trump has begun another trade war. Here's a timeline of how we got here. AP News. https://apnews.com/article/trump-tariffs-mexico-china-canada-trade-cfe1fa82a47f1bca21a82f4b504486c8

Statements from officials:

Statement by the Prime Minister on unjustified U.S. tariffs against Canada. (2025, March 3). Prime Minister of Canada. https://www.pm.gc.ca/en/news/statements/2025/03/03/statement-prime-minister-trudeau-on-unjustified-us-tariffs-against-canada
First ministers statement on eliminating internal trade barriers in Canada. (2025, March 5th) Former prime minister of Canada First Ministers’ statement on eliminating internal trade barriers in Canada | Prime Minister of Canada

Bank of Canada evaluation of potential impacts of U.S. tariffs:

Evaluating the potential impacts of US tariffs. (2025, January). Bank of Canada. https://www.bankofcanada.ca/publications/mpr/mpr-2025-01-29/in-focus-1/

This information was last updated on March 14, 2025.