Understanding the impact of current Trump tariffs on Canadian exports requires a clear overview of the imposed duties and the products they affect. These tariffs have been instituted under various authorities, particularly the Trade Expansion Act.
Overview of Trump Tariffs Impacting Canada
Here’s a succinct guide to help clarify which tariffs remain active and which Canadian goods are subjected to these duties.
Steel and Aluminum Tariffs
- Rate: 50%
- Imposed Date: March 12, 2025
- Original Rate: Initiated at 25% on June 4, 2025
- Authority: Section 232 of the Trade Expansion Act
This authority allows the U.S. President to impose tariffs based on the perceived threat to national security as identified by the Commerce Department.
Passenger Vehicles, Trucks, and Auto Parts
- Rate: 25%
- Imposed Dates: April 3 (vehicles), May 3 (parts), November 1 (trucks)
- Exemptions: U.S. content in imported vehicles and parts meeting CUSMA terms
- Authority: Section 232
The complexity of these regulations reflects the interconnected nature of the North American auto sector, complicating the tariffs’ impact.
Other Section 232 Tariffs
- Copper Products: 50% (effective since August 1)
- Upholstered Furniture and Kitchen Cabinets: 25% (effective since October 14)
- Softwood Timber and Lumber: 10% (effective since October 14)
- Buses: 10% (effective since November 1)
Additional Tariffs on Exports
- Rate: 10%
- Imposed Date: February 24, 2026
- Expiry Date: July 24, unless extended by Congress
- Exemptions: Products conforming to CUSMA and those subject to Section 232 sectoral tariffs
- Authority: Section 122 of the Trade Act
This section allows for temporary tariffs to address significant balance-of-payments deficits, though it has rarely been utilized since its introduction in 1974.
Remarkably, nearly 90% of the value of Canadian exports to the U.S. is exempt from these tariffs due to specific exclusions.
In a notable development, Trump implemented these tariffs following a U.S. Supreme Court ruling that annulled previous tariffs placed on Canada related to cross-border fentanyl trafficking.
