Get the Facts: How President Trump's tariffs with Canada have evolved
This week marked an important milestone in the state of trade between the United States and Canada.
This week marked an important milestone in the state of trade between the United States and Canada.
This week marked an important milestone in the state of trade between the United States and Canada.
This week marked an important milestone in the state of trade between the United States and Canada.
President Donald Trump met with Canadian Prime Minister Mark Carney on Tuesday. Carney, a former central banker who assumed office after Prime Minister Justin Trudeau resigned as leader of the center-left Liberal Party, won the Canadian election last week and has vowed to take on Trump and his tariffs.
During Trump's first term in office, the United States entered into a trade agreement called the United States-Mexico-Canada Agreement, or USMCA, which was signed on July 1, 2020. American workers, farmers, ranchers, and businesses have benefited from this trade deal by reducing or eliminating tariffs on goods, strengthening intellectual property protections, and improving market access.
On Feb. 1, 2025, Trump signed an implementing a 25% additional tariff on imports from Canada and a 10% additional tariff on energy and potash, which was put on pause for 30 days a couple of days after the announcement.
Since then, the United States and Canada have entered into a series of trade measures and countermeasures, involving everything from the price of orange juice to computer software and automobiles.
In March, Canada started to impose counter-tariffs against the United States. On March 4, Canada added tariffs on $30 billion worth of American goods in response to the 25% tariffs on Canadian exports and 10% tariffs on energy product exports. This includes products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and certain paper products.
When Trump imposed 25% tariffs on Canadian steel and aluminum products, Canada imposed countermeasures on March 12. This includes 25% reciprocal tariffs on steel, aluminum products and additional imported U.S. goods, including tools, computers and servers, display monitors, sports equipment and cast-iron products.
In April, when Trump's 25% tariff on Canadian automobiles took effect, Canada imposed 25% tariffs on vehicles from the United States that did not comply with USMCA. The 25% tariffs also extend to non-Canadian and non-Mexican content of USMCA-compliant vehicles imported into Canada from the United States.
Since the reciprocal tariffs were announced on April 2, Trump has reduced the tariffs to 10% across the board, implemented a 90-day pause, and raised tariffs on Chinese goods to 145%.
Canada was the top destination for U.S. exports and the third-largest source of U.S. imports in 2024. Around $412.7 billion worth of goods were imported from Canada in 2024.
The meeting at the Oval Office between Carney and Trump on Tuesday bore no solutions to tariffs.
While many nations have yet to come to agreements with the United States on tariffs, the United Kingdom announced the framework for a deal on Thursday.