Listeners, the latest chapter in US-Canada trade relations features a spike in tariff tensions, with direct impacts on Canadian businesses and consumers. As of August 7, 2025, President Donald Trump’s administration reinstated and expanded its reciprocal tariff policy, putting additional duties on countries including Canada. Under the current rules, Canadian goods not registered as compliant with the US-Mexico-Canada Agreement—often called the USMCA—are subject to steep tariffs: 35% for some items and 25% for others. These blanket tariffs have drawn accusations from Canadian officials, who argue that the moves violate the spirit and the letter of the USMCA, the regional trade pact meant to stabilize North American commerce and minimize such barriers.

While the revised tariffs are somewhat lower than original threats announced earlier this year, they remain significant and have sent shockwaves through the Canadian economy. According to a modeling study discussed at The Conversation, the tariffs are expected to reduce US annual GDP by 0.36%, but also negatively impact Canada and other trading partners. The broader economic effects include a decrease in US merchandise imports and exports, disruptions in supply chains, and ultimately higher costs for both American and Canadian consumers and businesses.

Canadian officials have responded with their own measures but, as the International Nut & Dried Fruit Council reported, Canada rolled back most of its retaliatory tariffs on US goods on September 1, 2025. This includes removing a 25% duty on US peanut butter and other American imports, aiming to ease some cross-border tensions and prevent further escalation. These policy adjustments reflect attempts by Canadian leaders to insulate domestic markets from additional price hikes and retail disruptions.

Headlines across Canadian media in recent weeks have highlighted the ongoing “trade war,” with grocery costs in America skyrocketing in part due to steel tariffs, as reported on September 22, 2025 by CanCentral. Meanwhile, Canadian GDP growth in Ontario is forecast to slow to just 0.9 percent this year, with the effects of reduced box shipments and consumer spending signaling a challenging outlook. According to BMO Economics cited by CBC News, there is hope for a slight rebound in the coming months, but uncertainty looms as the USMCA review approaches and trade relations remain fraught.

Listeners, as we continue to track these developments for Canada, expect ongoing headlines about tariff negotiations, sector-specific impacts, and political sparring between Ottawa and Washington. Thanks for tuning in to Canada Tariff News and Tracker! Be sure to subscribe for all the latest updates.

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