Listeners, welcome to Canada Tariff News and Tracker, your quick briefing on how shifting tariff policies between Washington and Ottawa are reshaping the Canadian economy.

Let’s start with the latest moves north of the border. According to Norton Rose Fulbright, Canada is rolling out aggressive new trade measures to shield its steel and lumber sectors following United States tariff actions and global overcapacity. Beginning December 26, Canada will cut back its tariff rate quotas on certain imported steel, meaning more foreign steel will face a steep 50 percent surtax once quarterly limits are hit. On top of that, Ottawa is imposing a new 25 percent global tariff on a wide range of steel derivative products, regardless of where they come from. The federal government is also tightening enforcement, with a dedicated Canada Border Services Agency steel compliance team and a “Buy Canadian” policy that prioritizes Canadian steel, aluminum, and softwood lumber in large federal projects.

These moves are unfolding against a backdrop of elevated U.S. tariffs championed by President Trump. A Datawrapper analysis of the “new 2025 policy” shows the **average effective U.S. tariff rate on imports from Canada** now sitting in the mid-teens, roughly around 13 percent before preferences and more than 17 percent when fully phased in. That is a dramatic break from the pre‑trade‑war era of near‑zero most‑favored‑nation rates and directly affects Canadian exporters in metals, autos, and agriculture.

At the same time, the Trump administration’s tariff program is under intense legal and political pressure. Politico reports that as of the end of October, Washington has collected about 1.97 billion U.S. dollars in tariffs on Canadian goods under emergency authorities that are now being challenged at the U.S. Supreme Court. Trade lawyers warn that if the Court finds Trump exceeded his powers under the International Emergency Economic Powers Act, some of those duties could be refunded, a potential windfall for Canadian firms that have paid into the system.

Yet the tariff story is more complicated than headline rates. Another Politico investigation finds that roughly half of all U.S. imports are now exempt from Trump’s “reciprocal” tariffs, thanks to a patchwork of carve‑outs, special deals, and product‑specific exclusions. Trump insists these exemptions are “not a big deal,” but for Canadian businesses, it means navigating a constantly shifting map of applied rates, exemptions, and potential refunds rather than a single clear tariff schedule.

For Canadian manufacturers, farmers, and logistics planners, the message is clear: U.S. tariffs on Canada are higher and more volatile than at any time in decades, and Canada is responding with its own mix of defensive tariffs, surtaxes, and procurement preferences. Staying on top of these changes is no longer optional; it is central to pricing, sourcing, and investment decisions on both sides of the border.

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