Listeners, here’s your essential Canada Tariff News and Tracker update for September 1, 2025. Major developments continue to reshape the trading landscape between Canada and the United States, with former President Donald Trump’s sweeping tariff regime front and center.

After a turbulent eighteen months, U.S. tariff rates under Trump’s policies have reached an estimated average of 18.6% by August 2025 according to Wikipedia’s coverage of tariffs in the second Trump administration. Trump’s approach has deeply affected partners like Canada, which has responded forcefully.

Back in February, Trump introduced broad-based U.S. tariffs on key Canadian sectors—steel, aluminum, and automobiles—significantly raising barriers for Canadian exporters. Canada hit back hard, imposing 25% retaliatory tariffs on $20 billion U.S. goods, later expanding these to nearly $30 billion. By March, both countries were in a full-blown trade dispute, impacting automotive manufacturers, retailers, and particularly cross-border agricultural trade.

However, not everything is locked in confrontation. Newly-inaugurated Canadian Prime Minister Mark Carney announced at the end of August that, following talks with Trump, most of Canada’s counter-tariffs on U.S. goods would be reduced starting September 1. Exemptions remain in place for CUSMA—Canada-U.S.-Mexico Agreement—compliant goods, but Canada kept its 25% duties on American autos, steel, and aluminum. Carney’s government framed this as a move to “re-establish free trade for the vast majority of our goods,” even as the U.S. tariffs on Canadian products grew from 25% to 35% last month, with those higher rates staying in place for many Canadian exporters. Global News emphasizes these are the highest U.S. tariffs on Canadian exports in nearly two decades and the situation remains dynamic as further negotiations are underway.

Meanwhile, the legality of Trump’s sweeping tariffs is under fierce judicial review. A 7-4 ruling by the U.S. Court of Appeals determined in late August that Trump had overstepped his authority by declaring national emergencies to justify these tariffs. CBS News and The Independent detail how Trump plans to appeal to the U.S. Supreme Court by October 14, leaving current tariffs in full effect for now. Trump called the ruling “highly partisan,” arguing on social media that eliminating tariffs would “destroy the United States of America.”

The economic impact is unmistakable. By June 2025, U.S. export data showed a staggering 42.6% drop in exports to Canada compared to a year earlier, as reported by News From the States. Some industries in both countries, including Indigenous Canadian businesses, have even halted regular exports to the U.S. in light of uncertainty, according to BNN.

Listeners, as U.S. and Canadian leaders negotiate and legal battles continue to unfold, Canada’s economy—and its vital trading relationship with the United States—hangs in the balance. With both nations watching closely for the outcome of Supreme Court deliberations and potential new tariff announcements, the coming months promise further volatility for cross-border businesses.

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