DiscoverCanada Tariff News and TrackerUS Imposes Massive 35% Tariffs on Canada Sparking Trade War Economic Tensions Amid Legal Challenges and Market Disruption
US Imposes Massive 35% Tariffs on Canada Sparking Trade War Economic Tensions Amid Legal Challenges and Market Disruption

US Imposes Massive 35% Tariffs on Canada Sparking Trade War Economic Tensions Amid Legal Challenges and Market Disruption

Update: 2025-09-15
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Listeners, this is your update for Canada Tariff News and Tracker on September 15, 2025, focusing on the latest headlines, numbers, and context involving US tariffs under President Trump’s administration.

The biggest news continues to be President Trump’s "Liberation Day" tariffs, a sweeping package of import duties announced on April 2, 2025. Trump signed Executive Order 14257, invoking a national emergency over the US trade deficit and authorizing broad new tariffs. Beginning April 5, a baseline 10% tariff applied to nearly all imports, with targeted higher tariffs rolling out after April 9, described by Trump as “reciprocal” measures matching other nations’ barriers. However, trade analysts widely reject that claim, noting that US rates often far exceed foreign levels and sometimes target countries with whom the US has no real deficit.

For Canada specifically, as of August 7, 2025, the US imposed a country-specific "reciprocal" tariff rate of 35% on Canadian goods. This marks one of the highest US tariffs imposed on a major trade partner and exceeds both the baseline and previous rates announced just months earlier. Politico and Bloomberg News both point out that these are the most significant protectionist moves since the Smoot–Hawley Act of the 1930s.

Canadian officials have responded with strong rhetoric and measured retaliation. There’s particular focus on energy as Canada moves forward with LNG expansion plans, aiming to diversify markets and offset US restrictions. Notably, legal challenges have hit the Trump tariffs hard: on May 28, the US Court of International Trade declared Trump’s tariffs illegal due to a lack of a rational connection between the emergency cited and the measures imposed, according to Thomson Reuters. A Washington DC court went further, holding that the law cited by Trump may not allow tariffs at all. Despite these defeats, tariffs remain in effect pending appeals.

On the ground, you’re seeing prices rise for Canadian exports to the US, including lumber, metals, and automobiles, with a related 25% duty now hitting autos unless qualified under USMCA rules. US businesses that depend on Canadian imports report significant cost increases, and industry leaders warn cross-border investment could suffer long-term.

With headline-grabbing increases, legal uncertainty, and shifting trade relationships, listeners, this is a pivotal moment in US-Canada economic ties. Be sure to follow the latest developments and how Canada is striking back, from legislative moves to energy expansion.

Thanks for tuning in to Canada Tariff News and Tracker! Don’t forget to subscribe for future episodes.

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US Imposes Massive 35% Tariffs on Canada Sparking Trade War Economic Tensions Amid Legal Challenges and Market Disruption

US Imposes Massive 35% Tariffs on Canada Sparking Trade War Economic Tensions Amid Legal Challenges and Market Disruption

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