Canada to announce CAD 29.8 billion in retaliatory tariffs on US in response to Trump's steel and aluminum tariffs - Canadian official

Canada to announce CAD 29.8 billion in retaliatory tariffs on US in response to Trump's steel and aluminum tariffs - Canadian official

The ongoing trade dispute between the United States and Canada escalated on March 4, 2025, when the U.S. imposed additional tariffs on Canadian imports. In response, Canada announced retaliatory tariffs on a range of U.S. products, totaling CAD 29.8 billion [1].

The U.S. tariffs, which affect goods classified under various Harmonized Tariff Schedule of the United States (HTSUS) codes, have sparked concern among Canadian policymakers and businesses. The new tariffs apply to all imports of articles that are products of Canada, except for certain exceptions [1].

In response, Canadian provinces have taken a hard line, implementing their own retaliatory measures. According to U.S. Customs and Border Protection (CBP) guidance, there are additional duty rates on goods entering the U.S. from Canada, effective March 4, 2025 [1].

The retaliatory tariffs imposed by Canada include a 25% additional ad valorem rate on all imports of articles that are products of Canada, except for certain exceptions [1]. Additionally, there is a 10% additional ad valorem rate on imports of energy or energy resources of Canada [1].

The impact of these tariffs on both sides of the border is significant. The trade dispute between the U.S. and Canada, two of the world's largest economies, has raised concerns among policymakers and businesses on both sides. Many hope that the tariffs will be short-lived and that the two countries will find a way to resolve their differences [1].

In the meantime, businesses on both sides of the border are facing challenges in navigating the complexities of the trade dispute. The situation is fluid, and businesses are advised to stay informed of developments and to seek the advice of experts to help them understand their obligations and minimize any potential negative impacts [1].

References:
[1] Avalara. (2025, March 6). What you need to know about the US-Canada trade war. https://www.avalara.com/blog/en/north-america/2025/03/canada-us-tariffs.html