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Tariff Turmoil: A Summary of the Latest U.S. – Canada Trade Developments

March 12, 2025Tariffs

President Trump has signed two executive orders temporarily suspending tariffs on various Canadian and Mexican goods. These tariffs, which had taken effect just two days earlier, were a response to Ontario’s announcement of a 25% surcharge on electricity exports to the U.S. The situation remains fluid, and ongoing updates are expected as both countries navigate these economic tensions.

Key Updates on U.S. Tariffs

On March 6, President Trump announced a temporary suspension of tariffs on Canadian goods that qualify under the Canada-United States-Mexico Agreement (CUSMA). This suspension is in effect until April 2, offering a brief reprieve for exporters meeting CUSMA compliance. However, any tariffs collected between March 4 and March 6 will not be refunded.

Additionally, exemptions have been granted for certain goods, including:

  • A 10% tariff on potash from Canada and Mexico outside of CUSMA preference.
  • A 30-day exemption for vehicles compliant with USMCA standards.
  • Temporary duty-free treatment for goods valued under $800.

The U.S. then announced doubled tariffs on Canadian steel and aluminum to 50%, effective March 12, these measures are now on hold. Businesses are urged to review the updated tariff codes, as many downstream products, including auto parts and furniture, can be impacted.

View the White House Fact Sheet for more information.

Other tariff exemptions and adjustments:

  • There is a lower 10% tariff on any potash imported from Canada and Mexico that falls outside the CUSMA preference.
  • On March 5, the White House announced that a 30 day tariff exemption would be granted for vehicles made in compliance with USMCA “so they are not at an economic disadvantage.”
  • On March 2, an Executive Order was issued that creates a temporary exception for goods eligible for duty-free de minimis treatment from Canada (e.g. shipments valued at less than $800). Per the Executive Order, this exemption will cease to be available once adequate systems have been put in place to collect tariff revenues.

Canada’s Retaliatory Measures

Canada has responded with its own tariff measures, including:

  • 25% tariffs on $155 billion worth of U.S. goods, starting with an initial $30 billion list.
  • A remission framework for businesses seeking transitional relief.
  • Non-tariff measures by provinces, such as removing U.S. liquor from shelves and restricting U.S.-based companies from government procurement.

You can view each individual province’s non-tariff measures:

To support Canadian businesses affected by these disruptions, the federal government has introduced a $6 billion support package, including relaxed EI rules, liquidity programs, and financing options.

Finance Canada’s Consultation on Counter Tariffs

Finance Canada has launched a 21-day consultation on the second phase of Canada’s tariff response, targeting $125 billion worth of U.S. goods. Businesses are encouraged to provide feedback on the proposed measures to ensure the government’s response aligns with industry priorities. The list of potential goods that might be tariffed can be viewed here. The consultation form and additional details can be accessed on Finance Canada’s website.

Input on tariff measures should be provided by completing this form. If you wish to provide additional information not included in the form, as well as any additional views or comments you would like to provide on Canada’s tariff response, you can also e-mail consultations@fin.gc.ca, and include “U.S. Tariff Consultations” in the subject line.

Advocacy and Collaboration

The Canadian Chamber of Commerce remains actively engaged in advocating for Canadian businesses. Recently, the Chamber’s leadership team visited Washington, D.C., to meet with policymakers and advocate against the tariffs. Businesses are encouraged to share their concerns and feedback with the Chamber to strengthen collective advocacy efforts.

As these developments unfold, the Lloydminster Chamber of Commerce is committed to keeping its members informed and supported. We encourage local businesses to review the latest tariff measures and participate in Finance Canada’s consultation. Together, we can navigate these challenges and advocate for a fair and sustainable trade environment.

For more information or to share your feedback, please contact the Canadian Chamber of Commerce or the Lloydminster Chamber of Commerce. Let’s ensure our voices are heard during this critical time for Canadian industry.

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