U.S. President Donald Trump’s global tariff agenda has upended Canada’s trade relationship with its largest commercial partner. Since Trump returned to office in January, Canadians have seen wave after wave of tariffs and counter-tariffs, threats that more will come, and some that have increased or faced exemptions.
It’s a complex, tangled picture. Here’s a look at what tariffs are currently in place and why, what more is being threatened, and how Canada has reacted to the trade war so far:Â
Active U.S. tariffs against Canada
• 50 per cent tariff on steel and aluminum imports into the U.S., because of an alleged threat to American security. This tariff originally came in at 25 per cent on March 12, but Trump to 50 per cent on June 4.Ìý
• 25 per cent tariff on auto parts imported into the U.S. kicked in May 3, that comply with the 2018 Canada-United States-Mexico Agreement (CUSMA), the current North American free trade deal. Trump also imposed a 25 per cent tariff on all cars and light trucks not made in the U.S., including from Canada, which took effect April 3. Trump justified the tariffs again for .Ìý
• 25 per cent tariff on Canadian goods, and a 10 per cent tariff on energy products from Canada, which was first in February and came into effect March 4. Trump has tied these so-called border tariffs to claims of a national emergency over fentanyl and migrants crossing the U.S. border illegally from Canada. On March 7, Canada won an to these tariffs for all goods that . RBC Economics estimated in an that, because of this exemption, about 86 per cent of Canadian exports could still cross the border without tariffs.
• 20.56 per cent tariffs on Canadian softwood lumber, over alleged “dumping” of cheaper products into the U.S. market. The Trump administration increased the tariff in late July from 7.66 per cent.
Retaliatory Canadian tariffs
• 25 per cent tariffs on $30 billion worth of American imports, implemented in response to Trump’s border tariffs.Ìý
• 25 per cent tariffs on $29.8 billion worth of steel and aluminum products from the U.S., implemented in response to Trump’s tariffs on the same goods from Canada.Ìý
• 25 per cent tariff on fully assembled vehicles that don’t comply with CUSMA since they are made with less than 75 per cent North American content. This counter-tariff took effect April 9. Components of compliant cars that aren’t made in Canada or Mexico are subject to the 25 per cent tariff. The tariff targets about $35 billion worth of American vehicles brought into Canada.Ìý
Other Canadian actions
• Canada abandoned its long-planned Digital Services Tax on June 29, after Trump from trade talks over the tax that would hit American online giants.Ìý
Threatened U.S. tariffsÂ
• 35 per cent tariff on Canadian goods that Trump said would kick in Aug. 1. Business groups and provinces like Ontario hope that any change in tariffs would preserve the CUSMA exemption won on March 7.Ìý
• 50 per cent as of Aug. 1.Ìý
• Trump has threatened a “very high” tariff on pharmaceutical imports, possibly as high as 200 per cent.Ìý
• The U.S. is considering tariffs on Ìý²¹²Ô»åÌý as part of national security reviews.
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