Canada-USA Trade Relations & Tariffs Update

Canada-USA Trade Relations

Information c/o Government of Canada, Department of Finance

On February 2, 2025 the United States administration imposed new tariffs under the International Emergency Economic Powers Act (IEEPA) effective February 4, 2025.  The new tariffs are as follows:

• 25% tariff on all imports from Mexico and Canada
• 10% tariff on Canadian energy products
• 10% additional tariff on all imports from China

Subsequent to these new US tariffs, the Canadian government has responded with a 25% Tariff on $30 Billion of goods imported from the U.S. effective February 4, 2025. The list includes products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper.

The initial list of U.S. origin goods subject to 25% duty can be found here.

There will be an additional 25% tariff applied to imported U.S. goods worth $125 billion. A full list of these goods will be made available for a 21-day public comment period prior to implementation.

We understand these changes are going to have a wide impact on many industries and supply chains affecting our customers. We recommend researching your supply chains and understanding the impact it may have on your business. Due to the ongoing changes to trade legislation, we suggest checking Global Affairs Canada regularly.

While this is a fast moving and fluid situation,  we have been working diligently to stay informed with the latest to assist you.  As more details become available we will provide timely updates.

Further Resources

• Canada Announces $155B Tariff Package in Response to Unjustified U.S. Tariffs (Gov. of Canada)
• Canada’s Response to U.S. Tariffs on Canadian Goods (Gov. of Canada, Dept. of Finance)
• Canada’s Border Plan (Gov. of Canada, National Security & Defence)

You may also contact the Department of Finance if you have any questions:

Minister of Finance and Intergovernmental Affairs
The Honourable Dominic LeBlanc
e: minister-ministre@fin.gc.ca

General Enquiries
Communications and Public Affairs Branch
e: financepublic-financepublique@fin.gc.ca

Support for Canadian Businesses

As a first line of defence, Canada’s robust system of economic support programs is available to help businesses and workers directly impacted by U.S. tariffs. This includes financing and advisory supports for businesses through financial Crown corporations and supports for workers.

Some of the supports that are already available include:

• Trade Commissioner Service
  The Trade Commissioner Service helps Canadian businesses grow with confidence by connecting them with its funding and support programs, international opportunities, and its network of trade commissioners in over 160 cities worldwide.
• Business Development Bank of Canada
  Business Development Bank of Canada (BDC) provides financing solutions and advice to small and medium-sized businesses in all industries and at every stage of growth.
• Export Development Canada
  Export Development Canada (EDC) helps Canadian companies of all sizes succeed in global markets with trade knowledge, financial solutions, insurance, equity and connections.
• Farm Credit Canada
  Farm Credit Canada (FCC) is a dedicated lender for the agriculture and agri-food sectors and provides a range of financial products and services to support Canadian farmers and business related to farming.
• Canada Small Business Financing Program
  The Canada Small Business Financing Program (CSBFP) makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.
• Employment and Social Development Canada
  The Work-Sharing Program helps employers and employees avoid layoffs, when there is a temporary decrease in the normal level of business activity that is beyond the control of the employer.

The government will closely monitor impacts across sectors and the economy, and will bring forward additional measures to support workers and businesses as needed.

The government is also taking steps to mitigate the impact of its tariff countermeasures on Canadian workers and businesses by establishing a remission process to consider requests for exceptional relief from the tariffs imposed as part of Canada’s immediate response, as well as any future tariff actions.

How Can Canadians Help?

Buying products made in Canada is a great way to support Canadian entrepreneurs, Canadian workers, and members of your local community.

When shopping, check products for “Made in Canada” or “Produced in Canada” labels, and consider buying them instead of other available products.

• Find out more about how to check for country of origin on food labels (Canadian Food Inspection Agency).

You can also choose to support your local businesses, producers, and farmers instead of larger shops.

• Find tips on supporting local businesses (Office of Consumer Affairs).