Trump's Canada Tariff War: A Year of Escalation
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- Trump imposed 25% tariffs on Canadian imports effective March 4 — with a reduced 10% rate on Canadian energy — by declaring a national emergency over undocumented immigration and drug trafficking.
- Canada retaliated under then-PM Trudeau with 25% tariffs on up to $155 billion in U.S. goods and a second wave on more than $100 billion of American goods over 21 days, suspending part of that after Trump exempted USMCA-compliant goods and U.S. automakers.
- Carney matched Trump's 25% auto levies with Canadian tariffs on non-USMCA-compliant U.S. vehicles starting April 9, then dropped many retaliatory duties in August to align with U.S. exemptions under USMCA.
- Trump raised tariffs on a range of Canadian goods to 35% effective Aug. 1, up from 25%, as a federal appeals court ruled he illegally used emergency powers for sweeping tariffs — leaving duties in place pending a Supreme Court appeal after the U.S. Court of International Trade first blocked him on May 28.
- Carney on Oct. 22 outlined a plan to double Canada's non-U.S. exports within a decade, citing tariff-threatened jobs that are "under threat" and an investment chill caused by the new levies.
- Trump ended "all trade negotiations" with Canada on Oct. 23 over an Ontario government TV ad opposing U.S. tariffs; Ontario Premier Doug Ford pulled the ad so talks could resume.
Why it matters: Two courts have now ruled Trump overstepped his emergency-powers authority on sweeping tariffs, yet billions in duties remain in force while Carney pledges to double Canada's non-U.S. exports within a decade — and the Ontario-ad standoff shows how politically fragile any future deal remains, with a 35% levy still biting Canadian goods.
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