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Canada’s Tariff Landscape in 2025: What You Need to Know

Business
March 20, 2025•3 min read

Canada’s trade landscape is constantly evolving, and tariffs play a significant role in shaping business costs and market access. With ongoing trade tensions, retaliatory measures, and shifting economic policies, staying informed about current tariff structures is crucial for businesses and consumers alike.

This article provides a comprehensive overview of the current tariff environment in Canada, including recent developments with the United States and China, as well as resources for staying updated.

Current State of Canadian Tariffs

1. U.S. Tariffs and Canada’s Response

Trade tensions between Canada and the U.S. have escalated in 2025. The U.S. recently imposed a 25% tariff on all Canadian imports (excluding energy, which faces a 10% tariff). The American administration cited national security and border control concerns as justification for these measures.

In retaliation, Canada imposed 25% tariffs on $30 billion worth of U.S. goods, with plans to expand to $155 billion if the U.S. tariffs persist. Some of the affected products include steel, aluminum, and agricultural commodities.

Additionally, Ontario has proposed a 25% surcharge on electricity exports to U.S. states, such as Michigan and New York. In response, the U.S. doubled down by implementing an additional 25% tariff on Canadian steel and aluminum, bringing the total tariff to 50%.

👉 Impact on Canadian Businesses:

  • Increased costs for Canadian manufacturers reliant on U.S. steel and aluminum.

  • Higher prices for imported U.S. goods, affecting retailers and consumers.

  • Potential job losses in export-heavy industries due to decreased competitiveness.

2. Canada-China Trade Disruptions

Tensions between Canada and China continue to affect trade policies. In late 2024, Canada imposed a 100% tariff on Chinese electric vehicles and a 25% tariff on Chinese steel and aluminum, citing concerns about unfair subsidies.

China retaliated by announcing a 100% tariff on key Canadian agricultural products, including:

  • Rapeseed oil

  • Peas

  • Oilcakes

Additionally, seafood and pork exports to China now face a 25% tariff, affecting Canada’s seafood industry and pork farmers.

👉 Impact on Canadian Businesses:

  • Farmers and food exporters are seeking alternative markets to mitigate losses.

  • Canadian EV buyers may face higher costs due to tariffs on Chinese imports.

  • China’s response could further escalate trade tensions, leading to more economic uncertainty.

Resources to Stay Updated on Tariffs

For businesses and individuals navigating the complexities of tariffs, these official sources provide up-to-date information on federal and provincial trade policies:

Federal Updates:

  • Canada Border Services Agency (CBSA):
    The CBSA’s     Customs Tariff (2025 edition) provides detailed information on tariff classifications and duty rate changes.

  • Department of Finance Canada:
    Get the latest news on Canada’s     retaliatory tariff measures and trade policy announcements.

Provincial Updates:

Other Trade & Business Resources:

  • Retail Council of Canada (RCC):
    The     Tariffs and Trade Hub provides updates on U.S.-Canada tariff changes, compliance issues, and trade regulations.

  • MNP Insights:
    Covers     federal and provincial tariff support programs and lists of U.S. imports affected by Canada’s retaliatory tariffs.

For real-time trade updates, consider subscribing to newsletters from these organizations or setting up Google Alerts for key trade topics.

Final Thoughts

With shifting trade dynamics, tariffs will continue to influence Canada’s economic landscape. For businesses, diversifying trade partners, exploring tariff relief programs, and staying informed are crucial strategies to navigate these challenges.

Stay tuned to MakeItInCanada.ca for regular updates on trade policies and economic trends affecting Canadian businesses!

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