For years, cross-border trade between Canada and the US flowed freely through integrated supply chains. Then, starting in early 2025, Canada began applying a 25% surtax on a range of US goods — a move that immediately changed the cost structure for Canadian businesses that import from American suppliers.

4 related posts

Tariff on steel, aluminum, autos: 25% · Effective date for current tariffs: September 1, 2025 · Lifted tariffs on CUSMA goods: Food, apparel, cosmetics · US trade war tariffs on Canada: 25% on imports except energy at 10% · Source for tariff data: Canada.ca, CBSA

Quick snapshot

1Confirmed facts
2What’s unclear
  • Exemptions lifted on food, apparel, cosmetics as of Sept 1, 2025
  • Outcome of ongoing negotiations between Canada and US
3Timeline signal
  • Executive Orders signed Feb 10–11, 2025; steel tariffs escalated to 50% June 4, 2025 (Blakes)
  • Steel quota reductions effective Dec 26, 2025 (Blakes)
4What’s next
  • Counter tariffs remain until US removes its measures (Department of Finance Canada)
  • 2026 business impacts and negotiations still uncertain (Department of Finance Canada)

The table below summarises the core figures driving Canada’s counter-tariff response.

Label Value
Primary Tariff Rate 25%
Key Date September 1, 2025
Exempt Categories CUSMA-compliant food, apparel
Source List canada.ca complete list
Trade War Context US 25% on Canada imports
Targeted US Goods Value $29.8 billion

What are Canada’s tariffs on US goods?

Canada issued a 25% surtax on US goods worth approximately $29.8 billion as a countermeasure, effective March 13, 2025 (PwC Tax Insights). The move directly targeted the same steel, aluminum, and automobiles that the US had tariffed on Canadian goods. The Canada Border Services Agency (CBSA) issued an official notice confirming the surtax took effect at 12:01 a.m. on that date, covering items including steel and aluminum bars, rods, angles, and shapes — plus a broader list of US-origin products.

The surtax applies to US goods across a range of categories beyond raw metals. The Canada Gazette formalised the $29.8 billion package, and the Government of Canada maintains the complete product list online. Canada Border Services Agency (CBSA) administers the surtax, and the Department of Finance Canada publishes updates and supplementary notices as the list evolves.

Current rates

  • Steel and aluminum from the US: 25% surtax, applied to originating products under the Canadian International Merchandise Trade (CIMT) system
  • Automobiles and auto parts: 25% surtax
  • Additional goods on the full list: 25% surtax

Affected product categories

  • Steel products (bars, rods, structural shapes, plate, sheet, strip)
  • Aluminum products (ingots, slabs, plates, sheet, strip, foil, tubes, pipes)
  • Automobiles and key auto parts
  • Other downstream fabricated metal products derived from tariffed steel or aluminum
Bottom line: Canada’s counter tariffs target $29.8B in US goods at 25%, spanning raw steel and aluminum through automobiles and fabricated downstream products. The CBSA administers the surtax.

Is the 25% tariff still in effect for Canada?

The 25% tariff on steel, aluminum, and automobiles remains active as of early 2026. The Department of Finance Canada confirmed that Canada’s counter tariffs on US steel, aluminum, and automobiles remain in effect during negotiations. Canada removed retaliatory tariffs on certain goods — including food, apparel, and cosmetics — on September 1, 2025, but the core 25% surtax on steel, aluminum, and automobiles has not been cancelled.

The upshot

The 25% tariff on steel, aluminum, and automobiles is not going away anytime soon. With negotiations ongoing and no deal in place, Canadian importers using US steel, aluminum, or automobiles should plan for sustained cost increases.

Status as of September 2025

  • 25% surtax active on steel, aluminum, automobiles
  • Exemptions for CUSMA-compliant goods may apply
  • Canada removed tariffs on some consumer goods: food, apparel, cosmetics

Exemptions for CUSMA goods

Goods that meet USMCA/CUSMA origin requirements may be exempt from Canada’s surtax. The EY Tax Alerts confirmed that USMCA-compliant Canadian goods were exempted from US 25% tariffs until April 2, 2025. Under the trade agreement, products that meet specific regional value content or manufacturing origin rules qualify for preferential tariff treatment — or zero duties — on both sides of the border.

What to watch

Over 85% of Canada-US trade remained tariff-free as of April 2025 due to the USMCA exemption, according to Baker Tilly and Wikipedia. The treaty continues to shield a large share of bilateral commerce from the current surtax regime.

Bottom line: The 25% tariff on steel, aluminum, and automobiles remains in effect. The exemption carve-out for USMCA-compliant goods continues to protect a substantial portion of trade, but the broader surtax persists.

What are Canadian tariffs on US steel, aluminum and auto imports?

Canada’s 25% surtax applies to US-origin steel, aluminum, and automobiles — covering not only raw materials but also downstream fabricated products derived from those materials. The Blakes timeline documents the progression of measures that brought Canadian retaliatory tariffs to their current scope. For Canadian manufacturers and importers relying on US steel and aluminum, the 25% surtax represents a direct cost increase that did not exist before March 2025.

Steel and aluminum specifics

  • 25% surtax applied to US-origin steel and aluminum products
  • Covers raw materials and downstream fabricated products
  • Canada Border Services Agency (CBSA) administers the surtax for originating products

Auto imports details

  • US imposed 25% tariffs on automobiles effective April 3, 2025 (Blakes)
  • Auto parts tariffs: 25% effective May 3, 2025 (KPMG)
  • USMCA-compliant automobiles may be exempt
Bottom line: Canada applies 25% tariffs to US steel, aluminum, automobiles, and auto parts, with USMCA-compliant goods potentially exempt. The surtax covers both raw materials and finished products.

Did Canada cancel tariffs on the US?

Canada has not fully cancelled the tariffs. On September 1, 2025, Canada removed retaliatory tariffs on certain goods — including food, apparel, and cosmetics — but steel, aluminum, and automobiles remain under the 25% surtax. The Department of Finance Canada maintains the current list of products still subject to counter tariffs.

The trade-off

The “cancellation” narrative is overstated. Canada scaled back the scope of its surtax, but the 25% tariff on steel, aluminum, and automobiles is structurally unchanged. Importers who assumed the tariffs were gone may be in for a surprise when processing their next shipment.

Recent changes

  • September 1, 2025: Canada lifted tariffs on food, apparel, cosmetics
  • Steel, aluminum, automobiles: 25% surtax remains in effect

Ongoing measures

  • Counter tariffs continue until the US removes its tariffs against Canadian steel and aluminum products
  • USMCA-compliant goods may qualify for exemptions
  • Negotiations between Canada and US remain ongoing
Bottom line: Canada narrowed the scope of its surtax but did not cancel it. The 25% tariff on steel, aluminum, and automobiles is structurally intact, with the future dependent on bilateral negotiations.

How much is import duty from the US to Canada?

General import duties from the US follow Canada’s MFN (Most Favoured Nation) tariff schedule — standard rates applied to most products regardless of origin. The C.H. Robinson tariff timeline provides a comprehensive view of how the current surtax fits into the broader trade landscape. Beyond the base MFN rate, Canadian importers may face the 25% counter tariff if the product falls on the surtax list, plus 5% federal GST and applicable provincial sales taxes.

MFN and applied rates

  • MFN rates set the baseline; applied rates vary by product category
  • USMCA preferential rates may reduce or eliminate duties for qualifying goods
  • 25% counter tariff applies to listed US goods in addition to base MFN rate

Tools and calculators

  • Canada Border Services Agency (CBSA) tariff rate lookup
  • Online duty calculators that incorporate HS code, origin, and agreement status
  • Consult a licensed customs broker for complex shipments
Bottom line: Import duty from the US to Canada varies by product. The 25% surtax applies to listed goods, but USMCA-compliant products may qualify for preferential rates. Always verify the specific HS code and applicable tariff treatment before importing.

Timeline of key events

Six months of escalating moves: the tariff situation developed rapidly, with both countries adding measures month by month.

  • January 20, 2025: US President Trump threatens 25% tariffs on Canadian products
  • February 10–11, 2025: US Executive Orders signed imposing 25% steel and aluminum tariffs (PwC Tax Insights)
  • March 12, 2025: US 25% tariffs on steel and aluminum effective (Blakes)
  • March 13, 2025: Canada 25% surtax on $29.8B US goods effective (CBSA)
  • April 3, 2025: US 25% tariffs on automobiles effective (Blakes)
  • April 2, 2025: USMCA exemptions expire
  • May 3, 2025: US 25% tariffs on auto parts effective (KPMG)
  • June 4, 2025: US steel and aluminum tariffs increase to 50% (Blakes)
  • September 1, 2025: Canada lifts tariffs on food, apparel, cosmetics (JD Supra)
  • December 26, 2025: Canada reduces steel import quotas for non-FTA countries (Blakes)

Confirmed facts and open questions

The tariff situation involves both well-documented actions and areas where outcomes remain uncertain.

Confirmed facts

  • US imposed 25% tariffs on steel and aluminum from all countries including Canada effective March 12, 2025 (PwC Tax Insights)
  • Canada’s countermeasures target $29.8 billion US imports with 25% surtaxes, remain until US eliminates tariffs (Canada Gazette)
  • US tariffs on autos effective April 3, 2025 at 25% (Blakes)
  • USMCA-compliant Canadian goods exempted from US 25% tariffs until April 2, 2025 (EY Tax Alerts)
  • US announced 25% tariffs on key automobile parts effective May 3, 2025 (KPMG)
  • US 10% duty on Canadian potash and energy continues (EY Tax Alerts)
  • Canada removed retaliatory tariffs on food, apparel, cosmetics effective September 1, 2025 (JD Supra)

What’s unclear

  • Outcome of ongoing negotiations between Canada and US
  • Whether additional product categories will be added to or removed from the surtax list
  • Long-term 2026 business impacts and whether supply chain shifts become permanent

Canada’s countermeasures are effective as of 12:01 a.m., March 13, 2025, and will remain in place until the U.S. eliminates its tariffs against Canadian steel and aluminum products.

This will help to preserve the Canadian market for Canadian producers harmed by U.S. tariffs.

What this means for importers and businesses

For Canadian businesses importing steel, aluminum, or automobiles from the US, the 25% surtax is a structural cost that did not exist before March 2025. The Department of Finance Canada confirmed that Canada’s counter tariffs on US steel, aluminum, and automobiles remain in effect during negotiations — meaning there is no immediate relief in sight. Businesses should verify whether their products qualify for USMCA exemptions, consider alternative suppliers in non-US markets, and build the 25% surtax into their cost calculations for the foreseeable future.

The Baker Tilly analysis notes that USMCA-compliant trade remained protected until April 2, 2025, and that over 85% of Canada-US trade remains tariff-free as of August 2025 due to the trade agreement. However, for businesses in steel, aluminum, or auto sectors with predominantly US-sourced inputs, the surtax creates a meaningful competitive disadvantage against suppliers from countries with no counter tariff in place.

Canada’s steel quota reductions for non-FTA countries — effective December 26, 2025 — add another layer of complexity for global supply chain planning, particularly for manufacturers sourcing steel from multiple countries.

The 25% tariff on steel, aluminum, and automobiles is a structural shift in the Canada-US trade relationship, not a temporary measure likely to resolve quickly. With negotiations ongoing and no deal in place, Canadian importers sourcing US steel, aluminum, or automobiles face sustained additional costs and should be evaluating supply chain alternatives now. The Government of Canada maintains the complete and current list of products subject to counter tariffs on its official website — importers should bookmark it and check for updates.

Bottom line: Canadian importers relying on US steel, aluminum, or automobiles face a permanent 25% cost surcharge until the US drops its tariffs. Businesses should verify USMCA exemptions, explore non-US suppliers, and track the official list for updates.

Related reading: Canada-US border entry rejection · Globe and Mail news

Canada’s post-September 2025 tariffs on US steel, aluminum and autos directly counter the Trump tariffs on Canada timeline that disrupted bilateral trade earlier in the year.

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Frequently asked questions

What countries have tariffs on US goods?

Several countries have imposed retaliatory tariffs on US goods in response to US trade measures. Canada’s $29.8 billion surtax is one of the more significant responses in terms of value and direct impact on Canadian importers. China has also imposed substantial tariffs on US goods. The specific countries, rates, and affected product categories vary, with Canada’s measures focused on steel, aluminum, and automobiles.

What is Canada’s response to US tariffs?

Canada responded to US tariffs on Canadian steel and aluminum by imposing a 25% surtax on approximately $29.8 billion worth of US-origin goods, effective March 13, 2025. The Canada Border Services Agency (CBSA) administers the surtax. The measures target US steel, aluminum, automobiles, and a broader list of US products. The counter tariffs remain in place until the US removes its tariffs against Canadian steel and aluminum.

How do Canadian tariffs affect US businesses in 2026?

For US exporters, Canadian tariffs mean reduced competitiveness in the Canadian market for affected goods. Canadian importers of US steel, aluminum, or automobiles face a 25% cost surcharge — costs that may be passed on to Canadian consumers or absorbed by margins. The Blakes timeline confirms the measures remain active, and with negotiations ongoing, the tariff environment is expected to persist through 2026.

What are Canada tariffs on US cars?

Canada applies a 25% tariff on US automobiles and key auto parts. The Department of Finance Canada maintains the current product list. Vehicles and parts meeting USMCA origin requirements may be exempt from the surtax.

History of Canadian tariffs on US goods?

The current tariff episode began in 2025, but it is not Canada’s first experience with US trade measures. In 2018, the US imposed tariffs on Canadian aluminum and steel under Section 232. Canada responded with its own tariffs at that time, with exemptions for Canada lifted on May 31, 2018 and resumed from May 20, 2019 (PwC Tax Insights). The current situation is more comprehensive in scope and value, with Canada’s surtax targeting $29.8 billion in US goods.

What are the $30 billion tariffs on Canada?

The “$30 billion tariffs on Canada” figure — more precisely $29.8 billion — refers to the value of US goods subject to Canada’s counter-tariff, not a separate US tariff on Canada. The Government of Canada confirmed the $29.8 billion figure. This encompasses the broad range of US products Canada has tariffed, with the actual affected value depending on product categories and exemptions.

Are Canadian tariffs on US goods changing in 2026?

As of early 2026, Canada’s 25% surtax on US steel, aluminum, and automobiles remains in effect. No comprehensive cancellation has been announced. The Department of Finance Canada continues to maintain the official list. Businesses should monitor ongoing bilateral negotiations for any changes.