Listeners, welcome to Canada Tariff News and Tracker, your daily source for up-to-the-moment coverage on tariffs, trade policy, and cross-border impact. Major developments continue to unfold between the United States and Canada as President Donald Trump’s tariff policy emboldens a new phase in North American trade.

As of August 1st, the Trump administration escalated its trade war by imposing a 35 percent tariff on all Canadian goods entering the United States. Prior to this move, the U.S. had already raised tariffs to 25 percent on most Canadian imports—with previous exemptions for goods covered under the USMCA. These latest measures follow months of warnings and negotiations. The White House publicly stated the new tariffs are a direct response to what President Trump called Canada’s failure to curb the flow of fentanyl and other illicit drugs into America. Trump posted an open letter to Prime Minister Mark Carney, saying, “These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” putting further adjustments on the table as the two governments continue to spar.

On its part, the Canadian government swiftly struck back with retaliatory tariffs on $30 billion worth of U.S. goods, later escalating to $155 billion as tensions mounted, according to a timeline compiled by Wikipedia. Canada targeted a wide spectrum of American exports, from agricultural products to machinery and vehicles, effectively raising the stakes for provincial businesses and U.S. exporters alike. In a recent “productive and wide-ranging” call between Trump and Carney, both leaders acknowledged ongoing challenges and agreed to reconvene soon, yet no breakthrough has been reported.

Canadian industries have been quick to feel the impact. The Financial Accountability Officer for Ontario reported that just in the second quarter of 2025, 38,000 industrial jobs were lost in the province, with manufacturing hit the hardest. The unemployment rate in Ontario surged to 7.8 percent, marking the highest figure since 2012 outside the pandemic period. Small businesses too are under immense pressure, as the Canadian Federation of Independent Business estimates that about 40 percent of small enterprises may not last the year if current conditions hold.

Meanwhile, analysts at the Fraser Institute point out that Trump’s erratic tariff measures have rocketed the average U.S. tariff rate from just 1.5 percent before his first term to as high as 28 percent in April, pushing the U.S. in global rankings from a frontrunner in trade freedom closer to the bottom of the pack. This volatility is not just squeezing Canadian exporters, but also raising costs and creating uncertainty for American manufacturers who rely on Canadian inputs.

With all this, cross-border travel is also showing a decline—500,000 fewer Canadians visited New York in July compared to last year, a drop of 22 percent—signaling broader rifts in north-south economic activity.

Listeners, that’s your comprehensive update on tariffs and trade tensions between the U.S. and Canada as of Friday, August 22, 2025. We’ll continue tracking every development so you stay informed. Thank you for tuning in, and don’t forget to subscribe to Canada Tariff News and Tracker. This has been a quiet please production, for more check out quiet please dot ai.

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