Trump Imposes New Tariffs on Canada Amid Ongoing Trade Dispute

US President Donald Trump has been at odds with Canada over tariffs since his first day back in office in January 2025. He initially threatened to impose 25% tariffs on imports from Canada, invoking a national emergency over undocumented immigration and drug trafficking. Canadian Prime Minister Justin Trudeau responded by promising retaliatory levies.

The US eventually rolled out an additional exemption for automakers and postponed the 25% tariff on goods that comply with the US-Mexico-Canada Agreement (USMCA). However, the tariffs still went into effect, and Canada imposed $29.8 billion Canadian dollars ($20.7 billion) in retaliatory tariffs on US imports.

Trump's trade war with Canada continued to escalate throughout 2025, with the President imposing new tariffs worldwide. In June, he introduced a 50% tariff on nearly all foreign steel and aluminum. The Prime Minister matched this rate with a tariff on non-USMCA compliant vehicles imported from the US.

After negotiations hit a snag in July, Trump threatened to impose even steeper tariffs on Canada. He claimed that Canada unfairly discriminates against US automobiles, alcohol, and dairy products. The levies were originally set to start on August 19 but were delayed until Saturday, August 22, after last-minute negotiations failed.

The new tariffs tax about 5% of what Canada ships to the United States every year, including products such as hockey sticks and tongue depressors. Canadian Prime Minister Mark Carney has promised to match them 'dollar for dollar' with retaliatory tariffs taking effect on September 8.