The Canada-U.S. tariff saga has left Canadians with burning questions on the levies that have come into effect, and what it means for Canadian customers. As customer goods are impacted on both sides, Yahoo News Canada breaks down some of the most-searched questions and reached out to experts for their hot takes on relevant matters.
What tariffs are on Canada right now, and what has been Canada’s response?
While Canada may not have featured on Trump’s global reciprocal tariff chart unveiled on April 2, it will continue to face the existing tariffs levied by the U.S. president since he kicked off his second term.
As of Apr. 3, 2025, the Canadian goods that continue to be impacted by Trump’s tariffs include:
1. Steel and Aluminium
A 25 per cent duty is applied to Canadian steel and aluminium products entering the U.S., impacting a broad range of metal products, including raw materials and manufactured goods. This is likely to increase costs for American industries reliant on these imports.
Canada’s response: Canada’s countermeasures include a 25 per cent reciprocal tariff on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported U.S. goods worth up to 30 billion. The list of additional products affected by counter tariffs includes tools, computers and servers, display monitors, sport equipment, and cast-iron products.
2. Automobiles
Set to take effect on Apr. 4, 2025, the U.S. will levy a 25 per cent tariff on Canadian automobile exports to its southern neighbour. Experts fear this tariff will impact the North American auto industry’s integrated supply chains negatively, potential spiking car prices for consumers.
Canada’s response: Prime Minister Mark Carney told reporters on April 3 that Canada will slam a 25 per cent tariff on all vehicles imported from the United States that are not compliant with the U.S.-Mexico-Canada trade deal.
3. Energy products
Trump also imposed a 10 per cent tariff on certain Canadian energy products like crude oil and natural gas. Canada accounts for about 60% of U.S. crude oil needs, therefore, this could lead to higher gasoline prices in the U.S. According to a recent report, Canadian energy companies like Nutrien, Enbridge, Magna, Bombardier and others with significant U.S. exposure are likely to face serious ramifications.
Potash
A key component in fertilizers, Potash has also been rolled into the broader tariffs implemented by the U.S. administration on Canada as of Apr. 3, 2025. Initially, the Americans proposed a 25 per cent levy, however, later reduced it to 10 per cent to minimize disruption in industries reliant on potash. The reduction is crucial for the U.S. to avoid adversely impacting farmers nationwide via cost increases since the country imports 85 per cent of its potash from Canada.
5. Tariffs on common Canadian goods
On March 4, 2025, the U.S. imposed tariffs of 25 per cent on Canadian exports, and 10 per cent on energy product exports from Canada.
Canada’s response: The Canadian government imposed 25 per cent tariffs on $30 billion in goods imported from the United States. The 25 per cent retaliatory tariffs mean Canadians may have to pay more for a wide range of U.S. products. Some of the key product categories affected include:
Common grocery items, highlighted by CBC:
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Various spices and seasonings, including vanilla, pepper, cinnamon, nutmeg, thyme, ginger, cumin and others.
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Oranges, lemons, limes and other citrus
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Berries, including raspberries and blackberries
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Grain products, including wheat, rye, barley, oats and rice
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Cooking oil products, including canola, palm oils and sunflower oils
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Chocolate and cocoa products
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Prepared bakery products, including bread, pizza, pies, cakes and other pastries
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Condiments, including mustard, ketchup and other tomato sauces, mayonnaise and salad dressings
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Bottled water, including waters containing added sugar or other sweetened or flavoured water
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Toiletries, including shampoos, toothpaste, deodorant and soaps
Other consumer goods
Home & Kitchen
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Appliances – Refrigerators, washing machines, and dishwashers manufactured in the U.S.
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Furniture – Sofas, chairs, and wooden furniture imported from U.S. manufacturers.
Vehicles & Auto Parts
Food Products
Electronics & Tech
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Laptops & Phones – Certain U.S.-made electronics may see price hikes.
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Televisions & Audio Equipment – Brands with U.S.-based manufacturing might be affected.
The full list of impacted products is available on the Canadian Department of Finance website.
The retaliatory tariffs and the Team Canada response also meant the province of Ontario cancelling the Starlink contract with Elon Musk — a $100 million agreement.
Canadians looking to turn their attention to Canada-made products can explore a list of alternatives at Made in Canada.
Trump’s reciprocal tariff chart
U.S. President Trump presented a chart with the amount of reciprocal tariff against the listed countries during his White House Rose Garden ceremony on “Liberation Day.” The tariffs are meant to address trade imbalances and protect U.S. industries.
The chart revealed a 10 per cent baseline tariff on all imports into the U.S. from the countries mentioned across the board. Some examples of country-specific reciprocal tariffs:
The list features over 180 countries but Canada and Mexico, surprisingly, did not make it. However, the pre-existing tariffs on both countries will continue to apply.
The president also levied duty on uninhabited Heard and Mcdonald Islands — an external Australian territory a little less than 1,600 km north of Antarctica, known to be one of the “Remotest Places On Earth.”
WASHINGTON, DC – APRIL 02: U.S. President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. Touting the event as “Liberation Day”, Trump is expected to announce additional tariffs targeting goods imported to the U.S. (Photo by Chip Somodevilla/Getty Images)
Is Canada exempted from the recent tariffs imposed by Trump?
Although Canada was not on the list of countries facing the reciprocal tariffs made public on Apr. 2, it has not been exempted from the pre-existing duties slapped on it in the lead-up to this round of tariffs. Which means while there are no additional tariffs for Canada, there is no relief either.
Owing to which, Prime Minister Mark Carney told reporters on Thursday that Canada will slam a 25 per cent tariff on all vehicles imported from the United States that are not compliant with the U.S.-Mexico-Canada trade deal. Mexico is excluded from this move by Canada.
Prime Minister Mark Carney speaks with media before chairing a meeting of the Cabinet Committee on Canada-U.S. Relations and National Security on Parliament Hill, Wednesday, April 2, 2025 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Financial markets across the globe tumbled as a result of the latest round of tariffs announced by Trump with the U.S. dollar and oil prices taking a solid beating. The dollar weakened against the yen and the British pound. Oil prices tanked about 7% to under $70 per barrel. Gold, however, hit a new peak of $3,167.84 an ounce. Shares in major sectors including auto, luxury and banking, also took big hits.
What do the tariffs mean for Canada?
The levies are expected to toss Canada into economic turmoil, considering the country’s exports and industries are heavily dependent on the American market.
After oil, cars, tractors and auto parts are the second largest export of Canada to the U.S. Which is why automakers are likely to feel the most heat, as the 25 per cent tariffs will mean a sharp rise in costs. Wood, charcoal and plastic products come next followed by precious metals and stones, all of which make a significant chunk of Canada’s exports to the U.S. when clubbed together.
Economist Peter Warrian, however, does feel there may be exceptions on tariffs for certain industries, at least in the short term.
“Near term, there may be exemptions for specific industries. Example automotive where a part May cross the border 3-4-5 times before it goes into a car,” he told Yahoo News Canada.
How do I know if something is made in Canada?
For consumers trying to determine whether a product is made in Canada, labelling provides important clues. Michael J. Widener explained in his response to Yahoo News Canada that for some items, like fresh produce, it’s straightforward—packaging typically states the country of origin. However, for processed or multi-ingredient foods, labelling can be more nuanced.
One key distinction is between “Product of Canada” and “Made in Canada.”
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“Product of Canada” means that all or nearly all of the main ingredients, processing, and labour come from Canada.
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“Made in Canada” indicates that while the item was manufactured domestically, it contains a mix of domestic and imported ingredients. The label often includes a disclaimer like “Made in Canada from domestic and imported ingredients.”
Why is Trump doing this? What are the impacts on Canada?
Former Canadian Prime Minister Justin Trudeau held the view that Trump was trying to trigger “a total collapse of the Canadian economy” because he thought that would “make it easier to annex us” — a notion the U.S. president has been consistently floating for months.
Trump’s motivations for imposing these tariffs appear to be a mix of economic pressure and political strategy. According to culture specialist Daniel Tsai, he aims to pressure Canada on border security while also extracting trade concessions and potentially destabilizing Canada for a more radical agenda like annexation, even if that idea is unrealistic or illegal.
How do tariffs work?
In the simples of forms, a tariff is a tax. Tariffs operate as a tax on goods that are imported by a business or individual. The additional cost is inevitably passed on to the consumer by way of higher prices, or alternative sources of those goods is brought in or sold to countries where there are no tariffs, according to multiple experts interviewed by Yahoo News Canada.
“A tariff is a tax that U.S. consumers pay extra when they buy imported Canadian goods rather than domestically produced U.S. goods,” economy expert Peter Morrow said in an email interview.
Speaking on how tariffs operate, University of Toronto lecturer Daniel Tsai said higher tariffs can risk inflation and therefore, cause a recession.
Tariffs raise the risk of inflation by spiking the price of goods and also increase the possibility of recession in causing the economy to tank as businesses and consumer get spooked the higher prices and have less revenue and income to purchase goods.
