Canada is ramping up its defenses against U.S. tariffs under President Trump, with major new restrictions on steel imports set to hit on December 26, 2025. According to Osler law firm updates, the Canadian government issued four Orders in Council on December 11, slashing tariff-rate quotas for steel from non-FTA countries to 20% of 2024 levels—down from 50%—and to 75% for non-CUSMA FTA countries, from 100%. A sweeping 25% surtax now applies to steel derivatives like chains, fasteners, barbed wire, and even prefabricated buildings, regardless of origin, as detailed by the Government of Canada and PCB Customs Brokers.
These moves come amid Trump's aggressive "Liberation Day" tariffs launched April 2, 2025, imposing 25% duties on Canadian imports including meat, grains, oilseeds, and produce, per Choices Magazine analysis. No bilateral deal exists yet with Canada, unlike agreements with the EU, Japan, and others, leaving cross-border trade in limbo. The White House fact sheets highlight tariffs tied to issues like fentanyl flows, while Canadian plow-maker Arctic Snowplows reports a $500 hit per $10,000 unit from U.S. steel and aluminum levies, forcing sales drops and uncertainty, as covered by Canadian Affairs.
Prime Minister Mark Carney, framing this as a "structural transition" in U.S.-Canada ties, has rolled back some counter-tariffs to coax negotiations, but Trump halted talks over an Ontario anti-tariff ad. Bank of Canada Governor Tiff Macklem warns of global upheaval, with Algoma Steel announcing 1,000 layoffs blamed on U.S. duties. United Steelworkers note gains from anti-dumping but stress the fight continues.
Exemptions offer some relief: goods in transit by December 26 avoid the surtax, and motor vehicle parts get until July 1, 2026. A new "Buy Canadian" procurement policy, effective now per Power Play reports, prioritizes domestic goods in federal buys.
Listeners, as tariffs escalate, Canadian firms eye new markets while supply chains strain—stay tuned for impacts on your wallet.
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