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Canadian tariffs on US products

Canada's response was to set up a 2 stage tariff/surtax strategy.

Stage 1

• The first stage includes a range of primarily consumer products  - including apparel and other products made from textiles (carpets, drapes etc.).  

• The list of products from the United States subject to 25 percent tariffs effective March 4, 2025, is available here:  Link

• 25% tariffs on these products were introduced by Canada on March 4th, and they remain in place today. On an annual basis, these goods represent imports of $870 million CDN.

Stage 2

• The Canadian government also created a list of products that may be subject to a 25% tariff on or after April 2.  This includes many textiles (yarns/fabrics).  The Canadian government requested comments on this list, and some member firms used this to request an exemption for US textile imports used in Canadian manufacturing.  Those comments were due April 2, 2025.  This comment period has now closed.  While this formal consultation has now concluded, Companies are welcome to share their comments with the Department of Finance at any time.  There is no indication that the government intends to move forward with duties on Stage 2 products.

• Since this list was issued, the US imposed duties on steel and aluminum (and products made from them) and automobiles and auto parts.  To date, the response from the Canadian government has been to apply retaliatory tariffs on the same products originating in the US.  This may change over time, and the Canadian government may need to impose duties on products contained in the Stage 2 list.

Duty remission

• The Candian government has circulated information about how companies can apply to have these retaliatory tariffs refunded. This is referred to as duty remission and applies to goods in both Stage 1 and Stage 2.  

• The government will consider requests for remission in the following instances:

  1. To address situations where goods used as inputs cannot be sourced domestically, either on a national or regional basis, or reasonably from non-U.S. sources.
  2. To address, on a case-by-case basis, other exceptional circumstances that could have severe adverse impacts on the Canadian economy.

• Further information on Canada's response to U.S. tariffs, including information on products subject to tariffs, the tariff remission process, can be found here: Canada's response to U.S. tariff