Listeners, welcome to the Canada Tariff News and Tracker podcast for November 26, 2025.
Here’s what’s making headlines today regarding tariffs between the United States, the Trump administration, and Canada. Tensions over trade have continued to dominate headlines, but for now, the widely discussed additional tariffs on Canadian goods have not taken effect. Following a breakdown in negotiations last month after an Ontario government ad sparked backlash in Washington, President Trump threatened to slap an extra 10 percent tariff on Canadian imports, on top of the existing 35 percent duty many Canadian products currently face. As of today, however, industry sources report that the Trump administration has not issued the necessary executive order, and U.S. officials have offered no formal guidance or timeline for implementation according to reports from POLITICO and trade industry sources.
This means the **current U.S. tariff rate on most Canadian imports remains at 35 percent**. Many goods, especially those covered under the United States-Mexico-Canada Agreement—USMCA—still have some protections in place, shielding select industries from the harshest penalties. However, the legal situation is unsettled, with a looming Supreme Court review that could potentially reshape the president’s authority to unilaterally impose tariffs under the International Emergency Economic Powers Act. That decision is not expected until summer 2026.
Listeners should know that even as the overall tariff environment hardens, there’s a carve-out for some major sectors. President Trump announced the removal of select tariffs on beef, coffee, and tropical fruits earlier this month, partially offsetting consumer price pressures. And, despite threats, the administration has so far chosen not to escalate further with Canada, preferring to let the legal and political process play out. The two governments maintain a working relationship, and many observers speculate that Trump may be holding back the new tariffs in anticipation of eventually renegotiating portions of the USMCA with Prime Minister Mark Carney after the upcoming joint review scheduled for July 2026, according to both MLex and industry commentaries.
But it’s not all status quo. Enforcement is set to become even stricter, as a new executive order signed by President Trump in recent months gives U.S. Customs and Border Protection the power to impose a massive 40 percent penalty tariff on any goods found to be transshipped through other countries to evade tariffs. No case-specific guidance is available yet, but importers are being warned to keep detailed documentation on their supply chains.
The situation remains fluid, and businesses reliant on cross-border trade should be prepared for continued volatility. For now, the threatened new tariffs on Canada are on hold, the legal battle is heating up, and the future of US-Canada trade will depend heavily on high-stakes court decisions and behind-the-scenes diplomatic maneuvering.
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