Listeners, welcome to Canada Tariff News and Tracker. Today’s update is packed with key developments impacting trade between the United States and Canada, especially under the evolving Trump administration tariff policies.

As of August 2025, the United States has implemented a new round of tariffs, and Canada is right in the crosshairs. Since August 1, Canadian products entering the U.S. are subject to a 35% tariff, although many goods that qualify under the United States-Mexico-Canada Agreement, also known as the USMCA, remain exempt. However, for items outside the agreement, that 35% rate marks one of the sharpest hikes Canada has faced in decades. According to trade tracking portals like ZhenHub and recent memoranda from U.S. executive orders, the 35% tariff is part of the so-called “reciprocal tariff regime” that President Trump introduced this year.

The timeline for these developments dates back to early 2025. In February, the United States briefly paused fresh tariffs for Canada, but by midsummer, pressure from “America First” stakeholders prompted the White House to reinstate and even intensify these measures. The Trump administration’s approach is to adjust tariffs week by week as negotiations unfold or retaliation from trade partners ramps up. Official U.S. government releases confirm the baseline tariff for many countries is 10%, but Canada, along with select others, sees far higher rates due to ongoing disputes and the push for reciprocity.

For listeners in Canada’s manufacturing sector, especially those exporting to the United States, news from July 31 is also significant on the import front. The Canadian government imposed a 25% surtax on certain steel and aluminum goods being imported for commercial use, especially if the raw materials are melted, poured, or cast in China. This measure is designed to prevent foreign steel—especially redirected products originally destined for the U.S.—from flooding the Canadian market after being pushed out by recent U.S. tariffs. Canadian importers now face not only administrative hurdles but also the risk of higher costs if they can’t prove the country of origin for these raw materials.

The big picture, as outlined by the Atlantic Council and financial analysts tracking trade, is a continually shifting landscape. Both governments reserve the right to review, modify, and even escalate these trade actions as negotiations continue. In short, listeners can expect further adjustments and plenty of uncertainty, especially as other countries respond and reciprocal actions ripple across the globe.

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