Tariffs 101 – SAIFood

Canada Strikes Back with Retaliatory Tariffs on U.S. Imports

In a bold response to U.S. trade actions, Prime Minister Justin Trudeau announced a sweeping 25% tariff on USD $105 billion worth of American imports. These tariffs, formalized under the United States Surtax Order (2025), were implemented under subsection 53(2) and paragraph 79(a) of the Customs Tariff, thanks to the Trump Administration.

The First Wave of Tariffs

The initial round of surtaxes took effect on February 4, 2025, hitting a wide range of U.S. goods. While some of these tariffs were put on hold for a month, when announced they included:

• Food & Beverage: Orange juice, peanut butter, wine, spirits, beer, and coffee.
• Consumer Goods: Household appliances, apparel, footwear, and cosmetics.
• Vehicles & Paper Products: Motorcycles, pulp, and paper.
• Extensive Coverage: A total of 1,256 Harmonized System (HS) codes fall under this surtax, accounting for USD $20.3 billion of the total announced tariffs.

For a complete breakdown of the affected goods, check out the official government list: Canadian Department of Finance – Tariff List.

What’s Next? A Second Round of Tariffs

A second wave of tariffs is on the horizon following a 21-day public comment period, giving Canadian businesses time to adjust supply chains. Expected to be included in this next round are:

• Automobiles & Transport: Passenger vehicles, trucks (including EVs), buses, recreational vehicles, and boats.
• Metals & Manufacturing: Steel and aluminum products.
• Agricultural Products: Beef, pork, dairy, and select fruits and vegetables.
• Aerospace Components.

Provincial-Level Pushback

Beyond federal action, several provinces are adding their countermeasures:

• Procurement Restrictions: Limiting contracts with U.S. suppliers.
• Trade Barriers: Rejecting U.S. business bids and canceling deals.
• Infrastructure Costs: Doubling tolls for U.S. commercial trucks entering via Cobequid Pass.
• Liquor Sales: Pulling U.S. alcohol from provincial liquor stores.

Provinces like Ontario, who sell electricity directly to the US grid have already announced they will be imposing their own measures, despite wanting to keep trading with the USA, as shown in their recent commercial aired in the USA.

Seeking Exemptions?

Businesses feeling the squeeze can apply for a remission order through the Department of Finance to request exclusions on specific products. However, approvals aren’t guaranteed, and the process is likely to be stringent.

As Canada tightens its trade policies, businesses on both sides of the border will need to adapt quickly to a shifting economic landscape.