U.S. tariffs on Canadian imports take effect, Canada counters

The United States’ 25 per cent tariffs on Canada have officially taken effect, with the added fees now being imposed on Canadian imports.

Despite delaying the tariffs for 30 days from their original implementation date of Feb. 4, the Trump administration is now moving forward with the levies on Canada and Mexico. The tariffs apply to any product originating from Canada that enters the U.S.

Canada countered with a 25 per cent tariff on approximately $30 billion worth of goods, and will be followed by an additional $125 billion on U.S. imports in about three weeks.

Visit here for a complete list of U.S. products subject to Canadian tariffs.

The White House announced March 3 it would temporarily delay tariffs on small shipments—referred to as de minimis goods—until the U.S. secretary of commerce confirms a system is in place to properly collect the duties. Normally, small shipments qualify for entry into the U.S. without tariffs.

President Donald Trump says the tariffs are necessary to secure the northern border and stop the flow of drugs, specifically fentanyl, into the U.S.

“Canada has played a central role in these challenges, including by failing to devote sufficient attention and resources or meaningfully coordinate with United States law enforcement partners to effectively stem the tide of illicit drugs,” Trump’s Feb. 1 executive order states.

“Despite a North American dialogue on the public health impacts of illicit drugs since 2016, Canadian officials have acknowledged that the problem has only grown. And while U.S. Customs and Border Protection (CBP) within the Department of Homeland Security seized, comparatively, much less fentanyl from Canada than from Mexico last year, fentanyl is so potent that even a very small parcel of the drug can cause many deaths and destruction to American families. In fact, the amount of fentanyl that crossed the northern border last year could kill 9.5 million Americans.”

In response, Canada has appointed Kevin Brosseau as the country’s fentanyl czar in an effort to work with the U.S. on the issue.

“As fentanyl czar, Mr. Brosseau will work closely with U.S. counterparts and law enforcement agencies to accelerate Canada’s ongoing work to detect, disrupt and dismantle the fentanyl trade,” the Prime Minister’s Office said in a statement. “While less than one per cent of the fentanyl intercepted at the U.S. border comes from Canada, any amount of fentanyl is too much. With Canada’s $1.3-billion border plan, we are reinforcing our strong border and stopping the fentanyl trade—with new Black Hawk helicopters, drones, mobile surveillance towers and nearly 10,000 frontline personnel protecting the border.”

To help minimize the impact of the U.S. tariffs, Canada has also begun eliminating internal trade barriers to make domestic trade easier and lower consumer prices.

“Our government is promoting many measures to remove barriers to trade within our country, including investing in more resilient supply chains and the removal of more than two-thirds of federal exceptions under the CFTA,” said Anita Anand, minister of transport and internal trade. “We are making it easier for Canadians to buy Canadian-made products, building a stronger economy and securing a more prosperous future for all Canadians.”

The federal government removed 20 exceptions under the Canadian Free Trade Agreement (CFTA), reducing its total from 39 to 19. Most of the exceptions were related to government procurement, allowing Canadian businesses greater access to compete across the country. The move followed a similar decision in July 2024, when Ottawa eliminated or narrowed 17 exceptions under the agreement. Since the CFTA’s launch in 2017, the government has removed 64 per cent of its exceptions.