Welcome to Canada Tariff News and Tracker, where we break down the latest on U.S. tariffs hitting our northern border. As of late December 2025, the U.S. average applied tariff rate stands at 16.8 percent, up from 2.5 percent earlier this year, according to Wikipedia's detailed recap of the second Trump administration's policies. That's generated over $250 billion in U.S. tariff revenue by now, with monthly collections topping $30 billion.
Trump kicked off the trade war on February 1, declaring national emergencies over fentanyl and imposing 25 percent tariffs on most Canadian goods under the International Emergency Economic Powers Act. Canadian energy products got a reduced 10 percent rate initially. Prime Minister Mark Carney, who led Liberals to a minority government victory in April amid anti-Trump sentiment, responded by suspending Canada's digital services tax, dropping most retaliatory tariffs, and boosting border security and defense spending.
By August, Trump hiked Canada's base tariff to 35 percent, citing dairy supply management and fentanyl flows, while Section 232 tariffs doubled steel and aluminum duties to 50 percent—Canada being the U.S.'s top supplier. Auto tariffs hit hard too: a 25 percent levy on all imported cars from April closed USMCA exemptions, though compliant auto parts later got relief. Ford CEO Jim Farley warned it could devastate the integrated North American supply chain, with car prices potentially rising $4,711 per vehicle, per economist Arthur Laffer.
USMCA-compliant goods—covering 95 percent of Canadian exports—remain exempt from the broadest tariffs. But tensions boiled over in October when Trump slapped an extra 10 percent on Canada after Ontario Premier Doug Ford aired anti-tariff ads quoting Ronald Reagan during the World Series. Talks stalled, with no deal in sight despite G7 pledges and White House meetings.
AM800 CKLW calls 2025 the year the shoe dropped on Canada-U.S. relations, freezing ties once expected to deepen under free trade. Seattle PI reports ongoing retaliation from Canada amid auto industry chaos. As China falls to third in U.S. imports behind Canada and Mexico, per Times Union, our exports face both opportunity and peril.
Stay vigilant, listeners—these tariffs reshape jobs, prices, and sovereignty daily.
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