Tariff Update - US Imposes Global Tariffs, Tariffs on Canada Remain Unchanged
Tariff Update - US Imposes Global Tariffs, Tariffs on Canada Remain Unchanged
This afternoon, the United States President has imposed ‘reciprocal’ tariffs on a number of countries, but not Canada or Mexico. For Canada, tariffs impacting us remain unchanged, with CUSMA exemptions extended, and vehicle, steel and aluminum tariffs continuing.
The Executive Order signed today imposes a baseline tariff of 10% on all countries, with higher rates applied to many countries. For example, China will face tariffs of 34%, India will face tariffs of 26%, and the EU will face tariffs of 20%.
The baseline 10% tariff takes effect on Saturday, April 5 at 12:01 am ET while the higher individual tariffs on specific countries will each take effect April 9, 2025 at 12:01 a.m. EDT.
Neither Canada nor Mexico are included in the list of countries impacted by today’s announcement.
For Canada and Mexico, the pre-existing tariffs (brought in under the pretense of battling fentanyl) remain in effect, and are unaffected by this order. This means USMCA-compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff.
If/when these pre-existing tariffs are terminated, USMCA-compliant goods would then continue to receive the 0% preferential treatment, while non-USMCA compliant goods would then be subject to an ongoing 12% reciprocal tariff. Energy and potash at that point would be non-tariffed as well.
The President also confirmed that the 25% tariff on foreign-made vehicles will go ahead as of April 3rd, 2025. In addition, the ongoing Steel and Aluminum tariffs will continue as well. However, neither will be subject to the additional tariffs noted above -- they will not stack.
The Langley Chamber has opposed the threat of US tariffs and the cost they imposed on business and consumers on both sides of the border, upending decades of mutually-beneficial trade between our countries.
The Langley Chamber will continue to engage on this issue, and will provide updates and more information as it becomes available on through Tariff Toolkit >
