Trump Imposes New Tariffs on Canada Amid Escalating Trade War

US President Donald Trump's trade war with Canada has been ongoing since his second term in office, causing strain on the longstanding relationship between the two countries.

The president imposed a 25% tariff on Canadian imports starting February 4, 2025, citing a national emergency over undocumented immigration and drug trafficking. The move prompted outgoing Prime Minister Justin Trudeau to promise retaliatory levies worth $29.8 billion Canadian dollars ($20.7 billion) on U.S. imports.

However, the tariffs were later pushed back, cooling tensions temporarily. Trump agreed to a 30-day pause and more limited tariffs on Canadian imports kicked in March 4. But the president's new steel and aluminum tariffs, which tax imports of both metals at 25%, still went into effect worldwide.

Later that year, Trump announced his 'reciprocal' tariffs on nearly all of America's trading partners, but didn't unveil additional levies on Canada. The U.S. Court of International Trade ruled in May 2025 that Trump overstepped his authority in imposing these tariffs, but a federal appeals court temporarily halted the order.

The trade war continued to escalate throughout 2025, with Trump imposing new 50% tariffs on nearly all foreign steel and aluminum in June. Canadian Prime Minister Mark Carney responded by threatening to impose new tariffs on U.S. steel and aluminum starting in July, pending progress of trade talks.