Welcome to Canada Tariff News and Tracker. As we close out 2025, Canada faces significant economic headwinds from the Trump administration's aggressive tariff policies that have fundamentally reshaped North American trade.
Throughout 2025, President Trump deployed unprecedented tariff authority, invoking the International Emergency Economic Powers Act to implement sweeping trade measures. In August, Trump increased the tariff rate on Canadian goods to 35 percent, though goods compliant with the USMCA trade agreement remained exempt from these levies. This exemption has been crucial for Canadian exporters, protecting approximately 95 percent of Canadian exports from tariffs.
The tariff landscape shifted dramatically in October when Trump announced an additional 10 percent tariff on Canada in retaliation for advertisements aired by Ontario Premier Doug Ford during the World Series opposing Trump's tariff policies. This brought total baseline tariffs to 45 percent for non-USMCA compliant Canadian goods, though the agreement's protections continue shielding the vast majority of bilateral trade.
Steel and aluminum have emerged as particular flashpoints. Canada, as America's largest supplier of these critical materials, faced 25 percent tariffs on steel and aluminum imports. In response, Canada implemented 25 percent retaliatory tariffs on an additional 20.6 billion Canadian dollars of US goods in March. The situation escalated further when Canada added a 25 percent tariff on non-compliant US-made USMCA vehicles in April.
The broader American tariff regime reveals the scale of Trump's trade war. From January to April 2025, the average US tariff rate surged from 2.5 percent to an estimated 27 percent, the highest level in over a century. By November, the average effective tariff rate settled at 16.8 percent. Overall, US tariff revenue exceeded 30 billion dollars monthly by late 2025, with annual customs revenue reaching 250 billion dollars by December.
For Canadian sectors, wheat farmers experienced particularly severe consequences. Canadian wheat captured 62 percent of South Korea's imports by mid-2025, displacing American suppliers who lost 410 million dollars in revenue and saw 6,200 jobs eliminated in North Dakota alone. This represents the kind of collateral damage reshaping North American supply chains.
Looking ahead, Canadian exporters remain cautiously optimistic that USMCA protections will continue anchoring bilateral trade, yet uncertainty persists as Trump's tariff strategies continue evolving and retaliatory measures remain on the table.
Thank you for tuning in to Canada Tariff News and Tracker. Please subscribe for the latest updates on how these policies affect Canadian businesses and workers. This has been a Quiet Please production. For more, check out quietplease.ai.
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