Canada Tariff News and Tracker

US-Canada Trade Tensions Escalate: New Tariffs Threaten Exports While Negotiations Hang in Delicate Balance


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Listeners, today’s Canada Tariff News and Tracker comes with a mix of clarity and caution as tensions remain high between the US and Canada over tariffs, but much of the drama is still unfolding behind the scenes.

In late October, President Trump stunned Canadian officials by announcing an additional 10% tariff increase on Canadian imports, just days after suspending trade talks in response to a $53 million Ontario government advertisement critical of US tariff policies. The announcement caused immediate anxiety, especially among auto, steel, aluminum, and lumber exporters, who already face significant duties. According to coverage by Ilkha News, the new tariffs could stack on top of existing rates—some Canadian goods, such as steel and aluminum, are already hit with duties as high as 50%, while non-Canada-US-Mexico Agreement compliant exports face 35% tariffs.

Yet as of today, US Customs and Border Protection has not implemented the extra 10% tariff, leaving Canadian exporters in limbo with uncertainty about when—if ever—it will be enforced. This inaction has led some analysts and trade associations, like Canada’s Automotive Parts Manufacturers’ Association, to conclude that the Trump administration is using the tariff threat as a negotiation lever rather than a policy commitment. Politico adds that US officials are keeping the measure “on the table” for future leverage, while Ottawa indicates it remains open for talks but will not wait passively.

The ongoing tariff headlines have real impacts. The Canadian Chamber of Commerce warns that Ontario, New Brunswick, and other regions remain particularly vulnerable, with auto, energy, and manufacturing industries bracing for potential shocks. National Post underscores that, while Canada’s economy has defied the worst predictions—GDP remains stable and retail sales are up—manufacturers and exporters are strategizing to weather unpredictable US policy and promote trade diversification, notably to Asia and Europe.

Current tariff rates reflect this uncertainty. As tracked by Baker Botts’ Trump Tariff Tracker, Canada faces 50% tariffs on steel, aluminum, and copper exports to the US, 35% tariffs on non-CUSMA-compliant goods, and 25% duties on automotive goods not meeting USMCA requirements. An additional 10% tariff remains a threat, particularly after the recent trade controversy.

A cultural dimension is also unfolding. As highlighted by Global News, some US senators warn that tariffs are now causing a ‘cultural break’ in cross-border relations—moving the friction beyond economics into tensions of national perception.

Despite the turbulence, the backbone of North American trade—the USMCA—remains intact for now. Most Canadian shipments meeting USMCA requirements are still exempt from the new tariffs, but the risk of further escalation has Canadian industries on edge and policymakers prioritizing negotiation and agility.

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Canada Tariff News and TrackerBy Inception Point Ai