U.S. to impose reciprocal tariffs, but Canada mostly spared

The United States will charge reciprocal tariffs on Canadian and Mexican products that do not fall under the U.S.-Mexico-Canada Agreement (USMCA), sparing the countries from additional tariffs.

U.S. President Donald Trump announced today (April 2) that several countries will face reciprocal tariffs on imports into the U.S. Canada has escaped additional tariffs, with the exception of non-USMCA-compliant products, as well as the automotive industry, which will still face a 25 per cent tariff starting April 3.

Trump said reciprocal tariffs will take effect immediately, and a global baseline tariff of 10 per cent on all products will be implemented across the board. However, only products from Canada entering the U.S. that do not fall under USMCA will be subject to a tariff, which will continue to be 25 per cent, and 10 per cent for energy and potash products.

He also accused Canada of imposing tariffs of 250 to 300 per cent on U.S. dairy producers. However, those tariffs are only applied when dairy imports exceed an agreed-upon threshold between the two countries.

Countries on the U.S. tariff list include China, the European Union, Vietnam, Taiwan, Japan, India, South Korea, Thailand, Switzerland, the United Kingdom, South Africa and Brazil.