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Updated: April 15, 2026
Canada extends surtax relief for U.S.-built vehicles through April 2027
On April 8, 2026, the Government of Canada finalized the United States Surtax Remission Order (Motor Vehicles 2026), extending relief from Canada’s 25% counter-tariffs on certain U.S.-manufactured vehicles for an additional year. The extension applies to eligible imports from April 9, 2026 through April 8, 2027 and continues the framework first introduced in 2025 in response to U.S. Section 232 automotive tariffs.
All vehicles (passenger and light trucks) must:
The United States Surtax Remission Order (Motor Vehicles 2025) is an enabling Order in Council and not an automatic exemption issued to eligible importers of record. To obtain a remission, the importer must make a claim to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation. The Canada Border Services Agency will continue to administer the program and assess remission claims under existing customs procedures.
Bottom line: For eligible automakers, the extension provides short-term cost certainty and relief from counter-tariffs—while reinforcing expectations around sustained Canadian production and long-term investment.
Updated: April 10, 2026
The US has announced changes to its Section 232 tariffs on steel, aluminum and copper, maintaining the 50% tariff on core metal imports while restructuring duties on many metal-based derivative products. Most derivatives are now subject to a flat 25% tariff applied to the full customs value, while certain industrial and electrical-grid equipment qualifies for a temporary 15% rate through the end of 2027.
This is intended to simplify compliance and reduce administrative complexity for importers.
For Canadian businesses, the changes may offer limited relief where products qualify under specific Annex III classifications or fall below the metal-content threshold; however, Canada does not receive a country-level exemption, and Section 232 duties continue to apply regardless of CUSMA origin.
Updated: February 23, 2026
Following the Supreme Court’s ruling on tariffs on February 20, 2026, US President Donald Trump has invoked Section 122 of the 1974 Trade Act—a provision that permits the president to issue temporary tariffs of 10% for a maximum of 150 days to address trade imbalances. Trump has said he intends to raise the rate to 15%. Although this authority exists in law, it has never been used before to impose tariffs.
The move is expected to affect global trade, companies, consumers, inflation, and Americans’ cost of living. At the same time, his administration is preparing to scale back certain metal tariffs, including on steel and aluminum, as it works to address affordability concerns ahead of the midterm elections.
Updated: February 20, 2026
The US Supreme Court has ruled that President Trump exceeded his authority by imposing broad, global tariffs under the International Emergency Economic Powers Act (IEEPA). The Court affirmed that IEEPA doesn’t permit the president to levy tariffs, immediately halting a major portion of the duties Trump introduced last year and upholding earlier lower‑court decisions. This ruling also raises the possibility of billions in refunds for US importers—estimated between US$129–175 billion.
The struck-down tariffs included broad emergency‑based duties that affected Canadian exports, meaning some sectors may now see reduced barriers and improved competitiveness in US markets, particularly where blanket tariffs had depressed demand. Although certain tariffs—such as those on steel and aluminum imposed under other US trade laws—remain in place, Canada may still benefit from a more stable and rules‑based environment as the ruling narrows the use of unilateral emergency tariff powers.
With the Court reaffirming that tariff authority rests with Congress rather than the president, Canada may also face a more predictable US trade policy landscape going forward—opening the door for renewed collaboration, potential sector‑specific carveouts, and opportunities to strengthen North American supply chain integration.
Updated: November 27, 2025
Prime Minister Mark Carney announced new measures to strengthen Canada’s steel and softwood lumber sectors, amid global trade pressures and US tariffs. The plan includes tighter steel import restrictions, support for domestic construction materials, and increased protections for Canadian steel and lumber workers and businesses. A breakdown of the measures is as follows:
Updated steel import restrictions
Support for domestic construction materials
Support for workers and businesses
Updated: October 27, 2025
To uphold its commitment to Canada's auto sector, the federal government is slashing import quotas for General Motors and Stellantis—two automakers accused of reneging on their production promises in Canada.
Finance Minister François-Philippe Champagne and Industry Minister Mélanie Joly announced the cuts, citing GM’s scale-back at its Oshawa and Ingersoll plants and Stellantis’ abrupt cancellation of plans for its Brampton facility. These actions, the ministers said, violate the companies’ contractual obligations under Canada’s auto tariff remission framework introduced in April 2025.
That framework allows automakers to import a limited number of US-made vehicles tariff-free—on the condition that they maintain agreed-upon production levels in Canada. With GM and Stellantis falling short, Ottawa is reducing GM’s quota by 24.2% and Stellantis’ by a striking 50%.
Updated: October 25, 2025
US President Donald Trump announced a 10% increase in tariffs on Canadian goods, escalating tensions in the Canada–US trade relationship. The move was triggered by an anti-tariff advertisement aired by the Province of Ontario. There has been no formal implementation details—making it more of a political signal than a policy at this stage.
Updated: October 17, 2025
The Canada Border Services Agency (CBSA) has updated Customs Notice 25-05 regarding the China Surtax Remission Order (2024), refining how Canadian importers can claim relief from surtaxes on certain Chinese goods. These changes are aimed at improving clarity, compliance, and accessibility for businesses.
Expanded product eligibility
Clearer conditions for remission
Updated: October 2, 2025
US President Donald Trump announced new tariffs on imported wood and furniture products, citing national security concerns. Beginning October 14, timber and lumber will face a 10% duty, while kitchen cabinets, vanities, and upholstered furniture will be taxed at 25%. These rates will rise in 2026 for countries that don’t reach trade deals with the US.
The move, made under Section 232 of the Trade Act, excludes exemptions under CUSMA/USMCA. The Canadian federal government has pledged $1.2 billion to support its lumber industry in response.
Updated: September 26, 2025
Recent trade policy developments in Canada and the US signal shifts in tariff strategies that could further affect cross-border trade. In Canada, the federal government has lifted most retaliatory tariffs on US goods, beyond what was initially communicated. A published order-in-council confirms that, aside from steel, aluminum, and automotive products, counter-tariffs have been removed — including on goods not covered by CUSMA/USMCA.
Meanwhile, US President Donald Trump has announced a new round of tariffs on imported goods, including 100% duties on branded pharmaceuticals and 25% on heavy-duty trucks, effective October 1, 2025. These measures aim to protect US domestic industries but may impact Canadian exporters, particularly in the automotive and pharmaceutical sectors. Canada is a key supplier of heavy-duty trucks and parts to the US, and increased tariffs will continue to increase costs and disrupt supply chains.
Updated: September 8, 2025
Prime Minister Mark Carney has announced a multi-billion dollar support package to help Canadian industries navigate ongoing trade tensions with the United States. The plan includes several key measures:
Carney emphasized a shift from “reliance to resilience” as trade negotiations stall and sector-specific deals take precedence.
For Canadian businesses, these measures offer short-term relief, new funding opportunities, and greater flexibility in adapting to changing market and regulatory conditions. However, the absence of a broader trade agreement and adjustments to climate policy may create uncertainty for long-term investment planning. The government also aims to encourage provinces and municipalities to adopt similar procurement standards to further strengthen domestic demand and economic stability.
Click here to read our previous announcements.
In addition, many of Canada’s provinces have proposed countermeasures to the tariffs, as of April 9, 2025.
Alberta
Alberta Premier Danielle Smith announced the province will no longer purchase alcohol or video lottery terminals from the US. Alberta also won’t enter into agreements with American companies
British Columbia
BC Premier David Eby has directed the BC Liquor Distribution Branch to stop purchasing American liquor and remove American brands from public liquor store shelves. He also directed the BC government and Crown corporations to buy Canadian goods first and prioritize BC products. Eby also announced that there will be support for businesses and individuals but didn’t provide further details at this time.
Manitoba
Manitoba Premier Wab Kinew announced the province will pull American liquor off the shelves.
In its 2025 budget, Manitoba committed up to $500 million to support businesses and workers impacted by tariffs. In addition, it will roll out several major infrastructure projects—such as new schools and hospital emergency departments—to help offset what the budget warns could be an economic downturn. Learn more in our budget summary.
On March 27, 2025, the province announced it will invest $1.5 million in grants to create a made-in-Manitoba program. The funds will be distributed through Canadian Manufacturers & Exporters (CME) and includes training for businesses and workers on tariffs and market expansion, financial assistance for tariff planning consultations, and a summit to strengthen business-to-business connections.
Newfoundland and Labrador
Newfoundland and Labrador Premier Andrew Furey announced the province will pull American liquor off the shelves. He also announced that the province will be reviewing and stopping immediately, where possible, procurement from the United States.
Nova Scotia
Nova Scotia Premier Tim Houston has directed the Nova Scotia Liquor Corporation (NSLC) to remove American liquor from stores. In addition, the province will seek opportunities to cancel existing contracts with American businesses, ban American businesses from bidding on provincial procurements, and reject existing bids . Houston will also double the cost of tolls at the Cobequid Pass for commercial vehicles from the US.
Ontario
Ontario introduced the Protect Ontario Financing Program on August 13, 2025, offering up to $1 billion in emergency loans to support businesses in the steel, aluminum, and auto sectors impacted by US tariffs. Part of a broader $5 billion tariff-related support package, the initiative aims to help businesses manage economic uncertainty by providing loans ranging from $250,000 - $40 million. Businesses that have exhausted federal support can use these funds to adjust operations and preserve jobs. If you’d like support in determining eligibility, please reach out to one of our experienced professionals.
Ontario Premier Doug Ford has ordered the Liquor Control Board of Ontario (LCBO) to remove American products, effective March 4, 2025. As the only wholesaler of alcohol in the province, the LCBO will also remove American products from its catalogue so that Ontario-based restaurants and retailers can't order or restock US products. Ontario is also banning American companies from provincial contracts until the tariffs are reversed. In addition, Ford says the province will end its $100-million deal with Starlink.
Quebec
Quebec Premier François Legault has directed the Société des alcools du Québec (SAQ), to remove all American products from its shelves, starting March 4, 2025. He also instructed the SAQ to halt the supply of American alcoholic beverages to grocery stores, restaurants, and bars. Additionally, Quebec will impose penalties of up to 25% on bids by American companies who participate in public calls for tenders, if those companies aren’t already established in the province.
Legault also announced a new program that will offer loans up to $50 million. The intent is to give companies time to adjust their business models or supply chains over the next 12 months.
New Brunswick
New Brunswick Premier Susan Holt announced its four-pillar response to US tariffs. The plan includes:
These measures are in addition to previously announced measures to:
Prince Edward Island
PEI Premier Rob Lantz announced that the province will take several measures to support businesses to support local businesses, including to:
Saskatchewan
Saskatchewan Premier Scott Moe directed the Saskatchewan Liquor and Gaming Authority (SLGA) to stop buying US-made alcohol and stop selling it to retailers and restaurants. He also said future capital projects planned by the government would be temporarily paused so that American contractors and materials could be minimized.
On March 26, 2025, Moe announced the province is reducing the industrial carbon tax to zero, in response to tariffs.
Other provinces have expressed solidarity as a nation and will likely announce response plans in the coming days.
Tariffs create uncertainty for Canadian businesses, impacting costs, supply chains, and long-term planning. As a Canadian business with deep roots across our country, we help our clients navigate challenges and thrive here and beyond. Reach out to your advisor for more details on how these tariffs could impact your business.
A tariff, which is a tax imposed by a country on imported or exported goods, is generally collected and enforced by a country’s customs authority or agency. For example, in Canada, the Canada Border Services Agency (CBSA) administers duties and taxes on imported goods, including tariffs. Tariffs are generally imposed in addition to any customs duties that apply to a specific product. Then, GST and provincial taxes also apply (but can later be recovered in some cases).
As tariffs are in fact, duties, the importer of record is generally responsible for paying any duties/tariffs that are applied. The importer of record could be the buyer or the seller (or some other person). The cost of tariffs is generally ultimately passed on to the final user or consumer.
On March 4, 2025, the federal government announced it will move forward with a 25% tariff on $155 billion in goods imported from the United States. Tariffs will apply immediately to a list of goods worth $30 billion. These initial tariffs affect a variety of goods, including orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and certain pulp and paper products.
The government also announced it will impose additional countermeasures on $125 billion in imports from the United States, drawing from a list of goods open for a 21-day comment period. The list includes products such as electric vehicles, fruits and vegetables, beef, pork, dairy, electronics, steel, aluminum, trucks, and buses.
The federal government is also proposing measures to ease the effects of the countermeasures on Canadians by launching a process to allow businesses to request exceptional relief from the tariffs. This “remission process” will allow Canadian businesses to request relief from the payment of tariffs or a refund of tariffs already paid. The federal government said it will consider requests for remission of tariffs that apply beginning on March 4, 2025 to address:
If the federal government decides to impose further tariffs, it notes that the remission process will also be available for those goods.
The imposition of these tariffs is expected to have significant repercussions for Canadian (and American) businesses, and the broader economy. If Canadian businesses act as the importer of record, they will face higher operational costs, which can squeeze profit margins, reduce cash flow, and limit their ability to reinvest in growth. If increased costs are passed on to Canadians, it may contribute to inflation.
On the other hand, if US purchasers act as the importer of record, higher prices could reduce demand for Canadian goods, leading to a decline in exports. This is particularly concerning for vulnerable industries like manufacturing, energy, forestry, and aerospace which rely heavily on US markets. Analysts from the Bank of Canada warn that a drop in exports could weaken Canada’s GDP, slow economic growth, and increase unemployment.
Overall, these tariffs create financial uncertainty for Canadian companies, disrupt trade relationships, and put downward pressure on economic growth. Without effective countermeasures or alternative markets, Canada risks slower economic expansion and potential long-term challenges for key industries.
We can help implement strategies to prepare for escalating trade tensions and help businesses understand how these changes affect them, including providing guidance on:
We’re closely monitoring policy changes and can help you navigate the regulations to find ways to alleviate the effects of tariffs and maintaining cash flow, while staying compliant. Reach out to your advisor for more details on how these tariffs could impact your business.
Updated: August 22, 2025
Following resumed tariff conversations with US President Donald Trump, Prime Minister Mark Carney announced Canada will eliminate retaliatory tariffs on US goods qualifying under CUSMA/USMCA by September 1, 2025. However, tariffs on steel, aluminum, and automobiles and goods that are not CUSMA/USCMA compliant will remain in place as Canada and the US work toward a new bilateral trade framework.
The move comes after the US raised tariffs to 35% on certain Canadian goods on August 1, 2025, citing ongoing fentanyl concerns and Canada’s retaliatory actions. Carney said removing tariffs on CUSMA/USMCA compliant imports will help advance trade talks with the US ahead of 2026 CUSMA/USMCA negotiations.
In addition to trade efforts, Carney outlined plans to boost Canada’s economy by expanding international trade, accelerating home construction, and investing in national defense. He also highlighted previously announced measures aimed at fast-tracking approvals for major infrastructure projects, with the first selections for these “nation-building” initiatives expected soon.
Updated: August 20, 2025
The US Commerce Department has significantly broadened its steel and aluminum tariffs on Canada, now applying them to 407 product categories including appliances, railcars, electric vehicle parts, wind turbines, mobile cranes, and more. These items will face a 50% tariff on their steel and aluminum content, plus existing country-specific rates on other materials. The move affects over $200 billion in imports and is expected to raise the overall effective tariff rate by about one percentage point.
Updated: August 15, 2025
China’s imposition of a 75.8% duty on Canadian canola seed is expected to significantly affect Canada’s $44-billion canola industry, expected to cause immediate price reductions and financial losses for more than 40,000 producers. The tariff, introduced in response to Canadian duties on Chinese electric vehicles and metals, effectively blocks access to China—Canada’s largest canola seed market. While industry groups are calling for financial support and investment in domestic processing, the federal government has stated it won’t adjust its own tariffs until there is clear indication that China will reciprocate. This position has left businesses in a state of uncertainty, with limited market alternatives and growing pressure for a resolution.
Updated: August 6, 2025
Prime Minister Mark Carney introduced a plan to support Canada’s lumber industry, citing its heavy reliance on US exports and vulnerability to trade policy under US President Donald Trump which are currently subject to Anti-dumping and countervailing duties.
The measures are part of a broader industrial strategy aimed at strengthening domestic production, diversifying markets, and building economic resilience. Key initiatives include:
$50 million for reskilling and income support for over 6,000 affected workers, helping them adapt to new technologies and industry shifts.
For questions regarding how these initiatives may benefit you, reach out to us here.
Updated: August 1, 2025
US President Donald Trump signed an executive order increasing tariffs on certain Canadian goods to 35% (from 25%), citing Canada’s alleged failure to curb fentanyl trafficking across the northern border. This move, dubbed the “fentanyl tariff,” is framed as a national emergency response under the International Emergency Economic Powers Act. However, goods that qualify under CUSMA/USMCA remain exempt, which currently covers many Canadian exports to the US.
For Canada, the implications are significant but somewhat contained. While the tariff hike adds pressure to ongoing trade negotiations, the CUSMA/USMCA exemption has so far shielded many Canadian goods from the impact. Still, the move underscores rising tensions between the countries, with American officials accusing Canada of inadequate cooperation on drug enforcement and trade fairness. Canadian officials dispute these claims and have responded by increasing border enforcement and appointing a special advisor on fentanyl.
Unsure if your goods are covered by CUSMA/USMCA? Get in touch today.
Updated: July 17, 2025
Prime Minister Mark Carney announced measures aimed at protecting and strengthening Canada’s steel industry through new trade measures and investments. Central to this announcement is a tightening of import controls. Canada will reduce tariff rate quotas (TRQs) for steel from non-free trade agreement (non-FTA) countries to 50% of 2024 import volumes, applying a 50% tariff on any imports above that threshold. For FTA partners outside the US, TRQs will be set at 100% of 2024 levels, with the same 50% tariff on excess imports. Existing trade arrangements with the US under USMCA/CUSMA will remain unchanged. Additionally, by the end of July, a 25% tariff will be imposed on steel imports from non-US countries that include steel melted and poured in China.
To help support workers and boost domestic production, the government is investing $70 million in training and income support for up to 10,000 steel workers, and $1 billion through the Strategic Innovation Fund to help companies modernize and expand. Additional financing and liquidity support will be made available to both small and large steel firms, and $150 million will be directed to regional development initiatives.
Additionally, Canadian steel will be prioritized in federal infrastructure and housing projects, with procurement rules requiring contractors to source domestically.
Updated: July 8, 2025
The Government of Canada has implemented a 50% surtax on certain steel goods imported from countries without a free trade agreement, effective June 27, 2025. This measure is in response to the risk of steel trade diversion into Canada following US tariffs under Section 232 of the Trade Expansion Act.
The surtax applies to five categories of steel—flat, long, pipe and tube, semi-finished, and stainless—when imports exceed quarterly tariff rate quotas (TRQs). These quotas are managed by Global Affairs Canada (GAC) through shipment-specific import permits. Imports without a valid permit or exceeding the quota in a specific category will automatically incur the surtax for the duration of the quarter. The surtax is administered by the Canada Border Services Agency (CBSA) and is calculated as 50% of the value for duty, in addition to any other applicable duties or taxes.
To help ensure the TRQs remain effective and responsive to market conditions, the government will conduct a 30-day review following implementation, with ongoing periodic evaluations thereafter. These reviews will be informed by a new industry-government steel task force.
Importers must monitor quota availability and ensure proper documentation, including proof of origin. Refunds may be requested if a permit is obtained retroactively.
Updated: June 30, 2025
Just hours before it was set to take effect on June 30, 2025, Canada withdrew its planned 3% Digital Services Tax (DST) on large technology companies to restart stalled trade negotiations with the United States. The tax, which would have applied retroactively to 2022 revenues exceeding $20 million from Canadian-source digital services, was expected to affect major US tech companies, like Amazon, Meta, Google, and Apple.
Canada’s Finance Minister announced that tax collection would be suspended and that legislation will be introduced to repeal the Digital Services Tax Act. The decision comes as Prime Minister Mark Carney and US President Donald Trump prepare to resume trade talks, with the goal of reaching an agreement by July 21.
Originally proposed in 2020, the DST was intended to ensure that large tech companies paid taxes on revenue generated from Canadian users. However, the Canadian government reaffirmed its preference for a multilateral solution to digital taxation.
Updated: June 4, 2025
US President Donald Trump has doubled tariffs on imported steel and aluminum to 50%. The new duties apply specifically to the steel and aluminum components of imported goods, while other materials may face different duties.
Canada wasn’t granted an exemption on the increase, unlike the UK, which recently signed a new trade agreement and will maintain the 25% rate.
Prime Minister Mark Carney says that the federal government is “actively negotiating with the US to remove these and other tariffs as part of a broader economic and security partnership”. He further states that all revenue from Canada’s retaliatory tariffs—over $90 billion before remissions—will go toward supporting affected Canadian workers and businesses.
Updated: May 30, 2025
A day after the US Court of International Trade ruled US President Trump’s import tariffs unlawful under national emergency powers, the Federal Circuit Court of Appeals in Washington issued a stay, keeping the tariffs in place during the appeals process. The Trump administration requested the stay to continue collecting tariffs, while US
President Donald Trump urged the Supreme Court to intervene, and the White House explored alternative strategies to uphold the tariffs.
As this matter is before the courts, Canadian businesses should anticipate that tariffs will remain in place for the foreseeable future and continue to explore strategies to mitigate the impact of these added costs.
Updated: May 29, 2025
The US Court of International Trade has determined that US President Donald Trump exceeded his legal authority by imposing broad tariffs under the International Emergency Economic Powers Act (IEEPA), including a 10% global tariff and duties targeting Canadian and Mexican imports. The decision blocks the “Liberation Day” tariffs and those linked to a fentanyl-related emergency declaration.
While some sector-specific tariffs—such as those on steel, aluminum, and autos—remain in place, the ruling limits the scope of future emergency-based trade actions.
This development may offer Canadian businesses greater predictability in cross-border trade, though the decision is being appealed by the President.
Updated: May 9, 2025
Tariff relief on auto parts
US Customs and Border Protection has clarified that auto parts compliant with USMCA/CUSMA are exempt from new tariffs introduced by President Trump. Non-compliant parts will face duties, but auto makers that assemble vehicles in the US may qualify for the following rebates over the next two years, based on overall vehicle content. For example:
Unstacking of tariffs
President Trump signed an executive order to prevent the compounding (or stacking) of multiple US tariffs on the same imported goods. Key provisions include:
Updated: April 17, 2025
Ontario Premier Doug Ford introduced new legislation aimed at eliminating interprovincial trade barriers, calling them a self-imposed tax that raises costs by up to 15%. The bill would make Ontario the first province to unconditionally remove all current trade exceptions and enable recognition of goods, services, and workers from reciprocating provinces. It also proposes easing restrictions on direct-to-consumer alcohol sales across provinces. Ford signed trade agreements with Nova Scotia and New Brunswick to support similar efforts, positioning internal trade improvements as a key strategy to strengthen Canada’s economy amid the uncertainty caused by US tariffs.
Updated: April 15, 2025
Canada’s federal government is offering the following temporary relief measures to Canadian automakers and certain manufacturers impacted by US tariffs:
Additionally, the Large Enterprise Tariff Loan Facility (LETL), first announced in March, is now open for applications. It aims to provide financial support to eligible large businesses—particularly those vital to Canada’s food, energy, economic, and national security—that are struggling to secure traditional financing due to the US trade conflict.
Updated: April 10, 2025
US President Donald Trump pivoted yesterday and announced that countries subject to reciprocal tariffs will now face a reduced 10% rate for 90 days.
However, this temporary reduction doesn’t apply to China, which is now subject to a 125% reciprocal tariff following China’s announcement of an 84% retaliatory tariff on US origin goods effective April 9, 2025.This is in addition to the previously imposed 20% fentanyl-related tariff and 25% punitive duty remaining in place from Trump’s first term, bringing the tariff on China to 170%, not including other pre-existing duties.
The 90-day reduction also doesn’t apply to Canada or Mexico as they aren’t included in the reciprocal tariff structure. However, previously announced tariffs, including auto and non-CUSMA/USMCA compliant imports remain in place.
Updated: April 3, 2025
US President Donald Trump announced his anticipated global reciprocal tariffs, including a 10% baseline tariff on all imports entering the country. However, Canada is partially exempt from this new round. Goods that comply with CUSMA/USMCA will remain tariff-free. Those that don’t qualify under CUSMA/USMCA will continue to be subject to the 25% tariff previously announced. Despite Canada’s exemption from the latest round of reciprocating tariffs, previously announced trade measures remain in effect. These include a:
So, while Canada at this point isn’t being hit with this current round of cascading tariffs, there’s still a significant impact to the Canadian economy through the auto tariffs and previously announced measures.
Canada has responded to the latest round of trade measures by matching a 25% tariff on all vehicles imported from the United States. The tariffs won’t affect auto parts.
Updated: March 27, 2025
US President Donald Trump has announced tariffs of up to 25% on imported automobiles and parts, effective April 3, 2025. The tariffs apply to all vehicles and parts made outside the US, including finished cars, trucks, and their parts. There’s an exemption for US-origin materials used in vehicles manufactured in Canada and Mexico under the CUSMA/USMCA trade deal.
Hours before these new tariffs were announced, Prime Minister Mark Carney announced a $2-billion “strategic response fund”. The fund aims to strengthen Canada’s auto industry by enhancing competitiveness, safeguarding manufacturing jobs, supporting worker training, and reinforcing the domestic supply chain.
Updated: March 24, 2025
As the prospect of current and potentially more tariffs continues to loom in the near future, Prime Minister Mark Carney announced the following relief measures for workers and businesses that may be negatively impacted by trade wars with the United States and China.
Support for workers:
Support for businesses:
Additionally, the federal government is advancing the following infrastructure initiatives aimed at boosting economic growth, improving connectivity, and supporting Indigenous partnerships:
Prime Minister Carney also emphasized the need to eliminate barriers to interprovincial trade. He pledged to introduce legislation by July 1, 2025, that will remove all federal obstacles to interprovincial trade and labour mobility, including eliminating all federal exemptions under the Canadian Free Trade Agreement.
Updated: March 20, 2025
The Department of Finance accepted public consultation in respect of the previously announced second round of retaliatory tariffs until April 2, 2025. All organizations are able to access and provide comments and concerns regarding proposed tariffs.
On another note, China has imposed retaliatory tariffs on some Canadian food imports, including 100% on canola oil, canola meal, and pea products, and 25% on seafood and pork. These measures are in response to the tariffs Canada imposed on Chinese-made electric vehicles (100%) and steel and aluminum (25%) in October 2024.
Updated: March 12, 2025
The US has imposed a 25% tariff on Canadian steel and aluminum imports (including certain derivative products ranging from nuts and bolts to bulldozer blades and car parts), effective March 12, 2025. This is stacked on top of the 25% punitive tariffs on Canadian goods that don’t qualify under CUSMA/USMCA. In response, Canada has announced additional retaliatory tariffs worth $29.8 billion. These counter-tariffs apply to $12.6 billion in steel, $3 billion in aluminum, and $14.2 billion in other US imports. They’re set to go into effect on March 13, 2025.
These new measures are in addition to the 25% tariff on $30 billion worth of specifically identified American goods entering Canada, which took effect on March 4, 2025.
Updated: March 6, 2025
The US has delayed the 25% tariff on goods from Canada and Mexico that fall under CUSMA/USMCA to April 2, 2025.
Updated: March 5, 2025
The US is granting a temporary 30-day tariff exemption for automakers and related parts, at the request of certain car makers that would qualify under CUSMA/USMCA.
Updated: March 4, 2025
The US implemented tariffs, imposing a 25% levy on all Canadian imports of goods, with the exception of energy products that are subject to a 10% tariff. In response, Canada has imposed a 25% tariff on $30 billion worth of specifically identifed American goods coming into Canada immediately. Canadian retaliatory tariffs will then be expanded to an additional $125 billion worth of US goods in the next 21 days, which may allow Canadian companies additional time to plan and find alternative suppliers.
Updated: February 27, 2025
US President Donald Trump says he will end a month-long pause and impose a 25% tariff on most Canadian imports, and 10% on energy, starting March 4, 2025. He reiterated that in addition reciprocal tariffs will begin on April 2, 2025.
Additionally, Trump plans to also implement a 25% tariff on imports from Mexico and an additional 10% tariff on imports from China, also beginning March 4.
Updated: February 13, 2025
US President Donald Trump has announced the potential of reciprocal tariffs on imported goods on Thursday February 13th. These new tariffs will not be imposed immediately but are to be reviewed by his trade and economic team who are to provide a report and presumably recommendations by April. These additional tariffs are to be aimed at countries who currently impose tariffs (or other charges) on imports from the US. Trump stated that the tariffs would vary depending on the specific rates imposed by each country and that they’d be “no more, no less” than what the US is charged.
Many countries in addition to Canada, have various tariffs and other restrictions on certain US imports, some safety related that are currently in place that appear to potentially fall within this current round of proposed tariffs.
It is not clear at this point if these new potential tariffs would in addition to the blanket tariffs initially announced on Canadian and Mexican imports that were deferred at least until March 4, 2025 by Trump just prior to the original implementation date of February 4th.
Additional comments from Trump this week noted the potential of more focused tariffs on the automobile, the semi-conductor chips and pharmaceuticals but as of yet no specific details have been released.
Updated: February 11, 2025
Despite the previous agreement to delay any tariffs for at least 30 days, President Donald Trump signed orders on February 10 imposing 25% tariffs on all steel and aluminum imports—including imports from Canada—to take effect on March 12, 2025. He will also impose a new North American requirement for steel to be “melted and poured” and aluminum “smelted and cast” within the region to limit imports of Chinese steel.
Similar to what was done in 2018 when Trump had imposed a 25% tariff on steel and a 10% tariff on aluminum, the current round of proposed tariffs will be imposed under Section 232 of the Trade Expansion Act of 1962, which gives the president the authority to restrict trade on the grounds of national security. In his first term, President Trump placed tariffs on Canadian steel and aluminum for a year under this Act.
Updated: February 4, 2025
Proposed tariffs between Canada and the US have been delayed for at least 30 days, according to a social media post from Prime Minister Justin Trudeau. This news comes after ongoing conversations between Trudeau and Donald Trump on February 2, a day before tariffs were set to be implemented. In his post, Trudeau reiterated the $1.3 billion border plan, including other measures to combat the flow of fentanyl. In addition, the United States has also agreed to delay the imposition of tariffs on Mexico for 30 days.
Following this announcement, some of Canada’s provinces have stated they will also put proposed retaliatory measures on hold, such as removing or limiting the sale of American alcohol and cancelling provincial contracts with American companies.
Disclaimer
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.
Despite Parliament being prorogued and subsequently dissolved, the CRA has confirmed that it will continue to administer the proposed increase to the lifetime capital gains exemption to $1.25 million retroactively, effective June 25, 2024.
The 2024 federal budget proposed an increase of the capital gains inclusion rate to 66.67% effective June 25, 2024, amongst other measures. However, given the prorogation of parliament between January 6 and March 24, 2025, the future of this proposed change has been uncertain.
Canadian businesses are monitoring potential effects of US tax policies on cross-border trade, the Canadian economy etc. under Donald Trump's administration.
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