DiscoverCanada Tariff News and TrackerUS-Canada Trade Tensions Escalate with New Tariffs Targeting Multiple Sectors Under CUSMA Review
US-Canada Trade Tensions Escalate with New Tariffs Targeting Multiple Sectors Under CUSMA Review

US-Canada Trade Tensions Escalate with New Tariffs Targeting Multiple Sectors Under CUSMA Review

Update: 2025-09-26
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Welcome to Canada Tariff News and Tracker. Today is September 26, 2025, and there have been significant developments in U.S.-Canada trade relations, particularly surrounding tariffs and ongoing tensions tied to former President Trump’s trade policies.

The monetary headlines today revolve around the escalating disputes over tariffs between the United States and Canada, with recent U.S. measures catching the attention of business leaders on both sides of the border. According to the National Post, this year the White House has imposed a 35 percent tariff on Canadian exports that do not comply with the Canada-United States-Mexico Agreement, or CUSMA. For many Canadian products, especially in the steel and aluminum sectors, these tariffs have reached as high as 50 percent, utilizing what are called Section 232 tariffs under the premise of safeguarding U.S. national security. Trade experts say that more sectors—including semiconductors, pharmaceuticals, lumber, commercial aircraft, and jet engines—may soon face similar U.S. investigations or new tariffs, undermining the stability and certainty that CUSMA was intended to provide.

This hardline approach reflects former President Trump’s ongoing rationale that the United States is being taken advantage of by trading partners and justifies high tariffs as protection for American workers and businesses. Trump has also expressed frustration over Canadian policies like supply management in agriculture, particularly dairy, eggs, and poultry. Reason Magazine’s commentary notes that Canadian supply management is now written into law, further restricting imports and limiting access for U.S. producers. Trump recently targeted Canada’s attempt to introduce a digital services tax affecting U.S. tech firms, threatening to halt all trade discussions with Canada unless the tax was rescinded. The threat worked—Canada withdrew the tax before it took effect.

All of this is happening alongside preparations for the formal CUSMA review, set for next year. Both Canada and Mexico are said to be launching internal consultations to gear up for what many believe will be contentious negotiations. Specialists cited by the National Post expect Washington to make demands for stricter rules of origin on auto manufacturing and more restrictions on Chinese investment.

Meanwhile, Canadian analysts and economists are warning about the cost of these ongoing tariffs and trade barriers. According to Fraser Institute research quoted in Reason Magazine, Canada’s supply management regime costs the average Canadian household hundreds of dollars a year, restricting choice and raising prices. With tit-for-tat measures and unpredictable tariffs, both U.S. and Canadian consumers are left paying the price.

Thank you for tuning in to Canada Tariff News and Tracker. Be sure to subscribe and stay updated as negotiations unfold and as we track every major development. This has been a quiet please production, for more check out quiet please dot ai.

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US-Canada Trade Tensions Escalate with New Tariffs Targeting Multiple Sectors Under CUSMA Review

US-Canada Trade Tensions Escalate with New Tariffs Targeting Multiple Sectors Under CUSMA Review

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