Effective: March 04, 2025
Est. Cost: Over 300 billion U.S. dollars annually in added import costs; global inflationary ripple effects
Impacted Jobs: 40000 - Canadian exporters across all sectors—from auto to agriculture—face sharp revenue drops
Description:
25% tariff on nearly all imports from Canada (imposed under a national emergency citing illegal immigration and fentanyl), with a reduced 10% rate on Canadian energy. Announced February 1 and initially postponed by 30 days, it took effect March 4. A later adjustment exempted goods that qualify under USMCA rules of origin.
This sweeping tariff action represents the most extreme protectionist measure in decades. Its intent to restore domestic production is overwhelmed by massive inflation, retaliation, and job losses. While politically dramatic, the policy is broadly viewed as economically disastrous and unsustainable.