On March 11, 2025, President Trump announced a series of new tariff actions targeting various products of Canada.
New Tariffs on Steel and Aluminum
President Trump has instructed the Secretary of Commerce to increase tariffs “on all steel and aluminum coming into the United States from Canada” by an additional 25%, bringing the total tariff on these goods to 50%, effective March 12, 2025. This measure follows Canada’s imposition of a 25% tariff on electricity entering the U.S. from Ontario. The new tariffs will be among the highest in the world, potentially disrupting industries that rely on Canadian steel and aluminum. U.S. businesses in manufacturing, construction, and related sectors should prepare for increased costs and potential supply chain disruptions. The new tariffs will also likely apply to the expanded list of derivative products and HTS codes already identified by the Secretary of Commerce for which the duties are not, as yet, effective.Potential for New Automobile Tariffs
The President has warned of significant increases in tariffs on Canadian-made automobiles, effective April 2nd, if Canada does not address high Canadian tariffs on certain products and other trade imbalances. A substantial hike in car tariffs could severely affect both U.S. and Canadian auto industries, particularly as the U.S. is a major market for Canadian vehicles. Companies in the automotive sector should prepare for short-term disruptions and consider the immediate strategic impact on their production and distribution plans.Canada’s Dairy Tariffs
The President has demanded that Canada immediately reduce its high tariffs on U.S. dairy products. These tariffs have long been a point of contention, and their removal is seen as essential for improving U.S.-Canada trade relations from the current administration’s perspective. Businesses in the agricultural sector, particularly those involved in dairy exports, should monitor developments closely, as the removal of these tariffs could open up new market opportunities.National Emergency Declaration on Electricity Imports
The President indicated that he “will shortly be declaring a National Emergency on Electricity within the threatened area” related to the U.S. electricity imports from Canada. This action would potentially provide the U.S. government with broader powers to respond swiftly to trade-related concerns and may be used to set the stage for additional tariffs. While the full scope and impact of this declaration remain unclear, businesses relying on Canadian electricity and imports should be aware of possible regulatory and tariff changes that may arise from this emergency declaration.
As these developments unfold, we will continue to provide updates as more information becomes available. Should you have any questions on how the tariffs will be implemented, please subscribe to our newsletters and contact one of the trade professionals listed here.