Toronto, July 16, 2025
President Donald Trump has advised Canada of a 35 percent tariff to take effect on August 1, 2025. The tariff, per White House spokesperson, will apply to non-USMCA qualifying goods (currently subject to 25 percent tariff) of Canadian origin, entering the United States.
This proposed measure would be applied independently of any existing sector-specific tariffs. The letter also indicated that further tariff increases could follow should Canada choose to respond with retaliatory actions. Official notification via Federal Register is not expected before July 31, 2025.
Canada is still negotiating with the U.S. to reach a deal, and future discussions under the United States–Mexico–Canada Agreement (USMCA/CUSMA) are expected. Prime Minister Mark Carney stated on Tuesday, July 15th, any deal would include tariffs against the U.S. and “there are obviously problems” with the US sectoral tariffs that do apply universally to steel, aluminum, auto exports, and the threatened ones on pharmaceuticals, lumber and, copper.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
