Question Period Note: CANADA’S MANUFACTURING SECTOR – IMPACTS OF U.S. TARIFFS

What is the Government of Canada doing to support the Canadian manufacturing sector considering U.S. tariffs?

• The Government of Canada is taking action to protect workers and businesses in Canadian manufacturing.
• The government will help build a new Canadian economy by working closely with reliable trade partners and allies, and investing in manufacturing industries to strengthen supply chains.
• U.S. tariffs are hurting millions of people on both sides of the border by raising costs, raising prices, and lowering demand.
• The government will continue to actively engage the U.S. with the objective of removing tariffs.

• The American and Canadian manufacturing sectors are highly interconnected, with close to 4/5 of Canadian exports directly supporting manufacturing production in the U.S.
• Canada has responded to the tariffs by introducing a suite of countermeasures designed to urge the U.S. to remove them as soon as possible.
• As global risks and unfair trade grow, Canada is engaging and partnering with reliable, like-minded nations to foster economic security, resilience, and trade diversification.

The current U.S. Administration imposed a series of tariffs against Canada, including:
• March 4, 2025: 25 percent tariffs on Canadian goods except energy and potash, which faced 10 percent tariffs. The U.S. subsequently limited these tariffs to non- Canada-United States-Mexico Agreement (CUSMA) compliant goods.
• March 12, 2025: 25 percent tariffs on Canadian steel and aluminum exports.
• April 3, 2025: 25 percent tariffs on Canadian automobile exports.
The U.S. Department of Commerce is currently undertaking a number of national security reviews into a number of additional goods, including semiconductors, pharmaceuticals, critical minerals, lumber, and medium- and heavy-duty vehicles.
The Government of Canada has responded through a suite of countermeasures including:
• tariffs of 25 percent on $30 billion in goods imported from the US, effective March 4, 2025;
• 25 percent tariffs on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported US goods worth $14.2 billion, for a total of $29.8 billion, effective as of March 13, 2025; and
• 25 percent tariffs on non-CUSMA compliant US-made vehicles, and on the non-Canadian and non-Mexican content of CUSMA compliant US-made vehicles, effective as of April 9. Vehicle imports from the US totalled $35.6 billion in 2024.
Canada has also provided support for domestic importers through its tariff remission framework that allows for relief from paying tariffs or the refund of payments already made.