Global Daily Tax News, Canada Guides On Response To US Tariffs, (Mar 7, 2025)

The Canadian Government has released guidance on the tariffs the nation will apply to US goods.

The levies are in response to the imposition of 10 percent tariffs on energy imports from Canada and 25 percent tariffs on all other imports, effective from March 4, 2025.

In response, Canada imposed reciprocal tariffs of 25 percent against CAD30bn in imports of goods from the US, also effective from March 4.

The guidance confirms that, if the US does not remove the tariffs applied to Canadian goods, the Government intends to impose a tariff of 25 percent on an additional CAD125bn worth of the goods imported from the US.

The Government has released a full list of goods liable to tariffs immediately. These focus on products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and certain paper products.

Following on from an ongoing 21-day consultation on the second round of tariffs, Canada intends to raise taxes on US exports of goods such as electric vehicles, trucks, and buses, certain fruits and vegetables, aerospace products, and beef, pork, and dairy products. The Government is seeking feedback on the second round of tariff hikes, by March 25, 2025.