Question Period Note: U.S. Tariffs and Canada's Response

Canada is subject to U.S. tariffs under the International Emergency Economic Powers Act (IEEPA) related to fentanyl and the border, Section 232 steel and aluminium tariffs, and Section 232 automotive

Canada continues to face unjustified tariffs imposed by the United States related to alleged border/fentanyl concerns, Section 232 tariffs on steel and aluminum, and Section 232 tariffs on autos.

» Canada has responded appropriately to these actions and will maintain its retaliatory tariffs until the United States withdraws its unjustified tariffs against Canada

» Canada will continue to engage with the United States for the permanent removal and prevention of additional unjustified tariffs by the Trump Administration

» · We will always defend Canada's interests and do what is best for Canadians and the Canadian economy.

The United States has imposed a number of unjustified tariffs against Canadian goods:
IEEPA tariffs: Under the IEEPA, on March 4 the United States imposed a 25% tariff on U.S. imports from Canada, with energy products (since amended to include potash) subject to a 10% tariff. Effective March 7 onward (i.e. no end date identified), U.S. tariffs were paused for imports from Canada that qualify for preferential treatment under the CUSMA (i.e. are "CUSMA compliant").
Section 232 tariffs on steel and aluminum: The United States has imposed global 25% tariffs under Section 232 on steel and aluminum imports, including derivative products, effective March 12. There is no exemption for CUSMA compliant goods in these sectors.
Section 232 tariffs on autos: The United States has imposed global 25% tariffs under Section 232 on imports of automobiles and on non-CUSMA compliant auto parts, effective April 3. The tariffs on automobiles apply to the non-U.S. content of vehicles imported under CUSMA, and to the full value of vehicles not imported under CUSMA. CUSMA compliant auto parts are for now not subject to 25% tariffs, until the Department of Commerce establishes a process to apply the tariffs exclusively to the non-U.S. content of auto parts. On April 29, President Trump granted limited relief for U.S. vehicle manufacturers designed to offset the Section 232 tariffs on non-CUSMA compliant parts over two years. This will have a limited impact on Canadian auto parts, given the exemption for CUSMA compliant auto parts.
As long as the IEEPA fentanyl and border tariffs remain in place, Canada and Mexico are exempt from U.S. 10% "reciprocal" tariffs imposed on April 9 against top trade partners (except China which saw much higher rates) for 90 days, after which they may increase. Canada has imposed counter-tariffs in response to U.S. tariffs:
IEEPA tariffs: Effective March 4, Canada has imposed a 25% tariff on imports of American goods valued at $30 billion. These are mostly consumer and household products, including orange juice, beer, wine, spirits, appliances, furniture, motorcycles, and apparel.

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