U.S. President Donald Trump鈥檚 tariff war with Canada is escalating with new measures from the U.S. and retaliatory responses from Canada.聽
Here鈥檚 a look at what tariffs are currently in place, what is being threatened, and how Canada has retaliated so far:聽
Active U.S. tariffs
鈥 A 25 per cent tariff on Canadian steel, aluminum, and many 鈥渄erivative鈥 products made with those metals.聽
鈥 A 25 per cent tariff on all Canadian products that don鈥檛 comply with the 2018 Canada-United States-Mexico Agreement (CUSMA), and a 10 per cent tariff on non-compliant energy and potash. Experts say about 50 to 60 per cent of Canada鈥檚 exports to the U.S. comply with the trade deal鈥檚 rules. Trump has tied these so-called border tariffs to claims of a national emergency over fentanyl and migrants crossing the U.S. border illegally from Canada.
鈥 A 25 per cent tariff on all cars and light trucks not made in the U.S., which took effect April 3.聽
Retaliatory Canadian tariffs
鈥 25 per cent tariffs on $30 billion worth of American imports, implemented in response to Trump鈥檚 border tariffs.聽
鈥 25 per cent tariffs on $29.8 billion worth of steel and aluminum products from the U.S., implemented in response to Trump鈥檚 tariffs on the same goods from Canada.聽
鈥 A 25 per cent tariff on fully assembled vehicles that don鈥檛 comply with CUSMA since they are made with less than 75 per cent North American content. This counter-tariff took effect April 9. Components of compliant cars that aren鈥檛 made in Canada or Mexico are subject to the 25 per cent tariff. Prime Minister Mark Carney鈥檚 office said April 3 this is the 鈥渕irror鈥 of Trump鈥檚 auto tariffs on Canada, but it does not apply to auto parts that cross back and forth across the border. The tariff targets about $35 billion worth of American vehicles brought into Canada.聽
鈥 Canada鈥檚 counter-tariffs would be paid by Canadian importers of American goods. The duties levied to date could raise up to $24 billion in revenue before remissions for the Canadian treasury.
Threatened U.S. tariffs聽
鈥 Trump鈥檚 鈥渞eciprocal鈥 tariffs: on April 2, Trump imposed a sweeping 10 per cent baseline tariff on imports into the U.S., with duties going up to 50 per cent on dozens of countries or territories that the Trump administration argues use trade barriers unfairly against America. Though Trump spared Canada from a new baseline tariff, his executive order says that if the so-called border tariff is dropped, Canadian imports that don鈥檛 comply with CUSMA would be slapped with a 12 per cent 鈥渞eciprocal鈥 tariff.聽
鈥 An unspecified tariff on copper, dependent on a due before Nov. 25.
鈥 Additional unspecified tariffs on lumber, dependent on a due before Dec. 1. The U.S. Commerce Department has recommended lumber tariffs against Canadian spruce, pine and fir be raised from more than 14 per cent to more than 34 per cent.
鈥 Trump demands a 鈥渇airer economic deal鈥 be negotiated ahead of the scheduled July 2026 review of the Canada-U.S.-Mexico free trade deal. sets out his America First trade policy, and hints he will consider withdrawal from the deal. He has asked for recommendations about America鈥檚 鈥減articipation in the agreement,鈥 and tied his view of what鈥檚 鈥渇air鈥 or 鈥渦nfair鈥 to criticisms of Canada on a range of topics, including what he says is Canada鈥檚 failure to spend on its military protection, to meet its NATO defence spending target of two per cent of GDP, to its value-added 5 per cent federal sales tax, dairy tariffs, and 3 per cent digital services tax.
鈥 Carney said April 2 that the U.S. has 鈥渟ignalled鈥 it is preparing more tariffs that will hit Canada on 鈥渟o-called strategic sectors鈥 like pharmaceuticals, lumber and semiconductors.
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