Trade and Tariffs

Trade and tariff uncertainty have become the hallmarks of the second Trump administration. The flurry of memoranda and executive orders in early 2025 related to trade have ostensively been based on President Trumps “America First Trade Policy” which covers three principal areas:

1. Addressing unfair and unbalanced trade.
2. Economic and trade relations with the People's Republic of China.
3. Economic security matters.

The flow of illegal drugs and/or migrants from Canada, Mexico and China into America has been used as a justification to utilize the International Emergency Economic Powers Act (IEEPA) to implement tariffs on imports from other countries.

Amongst the tariffs implemented or planned, are a number which will impact Canadian businesses (Both directly and indirectly). These include:

1. 25% on all goods from Canada (10% on energy)
2. 25% Steel (globally including Canada)
3. 25% Aluminium (globally including Canada)
4. Reciprocal tariffs (globally including Canada)
5. Agricultural products tariffs (TBC)
6. Cars, chips and Pharmaceuticals (TBC)
7. Lumber and lumber products (TBC)

It should be noted that sector specific tariffs on Canadian products will be accumulative over the 25% on all Canadian goods and services exported to America.

The retaliatory tariffs already announced by the Canadian government will also have an inflationary impact on the cost of certain goods procured from America.
(See list of initial retaliatory tariffs here.)

More information, tools and support on tariffs and trade can be found in the sections below.