How Trump’s tariffs are hitting Canadian goods

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On Saturday, the U.S. imposed new tariffs to roughly five per cent of all of Canada’s exports to the United States, to a value of roughly $28 billion annually.

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The tariffs are grouped by three executive orders loosely themed around motor vehicles, dairy and alcohol. But the content of each of Trump’s actual tariff lists are broader and not necessarily tied to those items.

Items on the list include non-alcoholic beer, cements, vacuums, cameras and projectors, hockey sticks and natural honey.

Unlike other tariffs, the duties affect goods that are compliant with the Canada-U.S.-Mexico Agreement on trade, known as CUSMA.

Global forced labour tariffs

In July, Trump imposed new global tariff under Section 301 of the Trade Act of 1974. Trump argued the tariffs are being imposed because countries are not doing enough to fight forced labour.

They served as a more permanent replacement for worldwide tariffs that Trump imposed last year only to see them struck down by the Supreme Court in February.

These tariffs are 10 per cent across the board but do not apply to CUSMA compliant goods so the impact on Canada is minimal.

Steel and aluminum tariffs

Trump used Section 232 of the Trade Expansion Act of 1962 to impose steel and aluminum tariffs last year, citing national security as justification.

The duties started at 25 per cent but Trump increased the steel and aluminum tariffs to 50 per cent in June.

That same month, the Trump administration expanded the tariffs to the steel content in additional products, including dishwashers, refrigerators, washing machines and freezers.

Automobile tariffs

Trump used Section 232 of the Trade Expansion Act of 1962 to impose 25 per cent tariffs on finished automobiles last year.

There is a CUSMA exemption for Canada because of the highly integrated North American automobile industry. Only the non-American components of a vehicle face the duties.

While Trump did go ahead with tariffs on automobile parts for most countries, Canada was never hit with those duties for auto parts compliant with CUSMA.

Copper tariffs

Starting last August, Trump used Section 232 of the Trade Expansion Act of 1962 to impose 50 per cent tariffs on copper.

The Canadian industry saw some relief because raw materials are exempted from the tariff.

Lumber tariffs

Trump used Section 232 of the Trade Expansion Act of 1962 to impose 10 per cent tariffs on softwood timber and lumber in October 2025.

The tariffs alarmed the Canadian lumber sector because the U.S. Commerce Department drastically increased countervailing duties and anti-dumping duties on Canada earlier this year — pushing them up from 14.5 per cent to 35 per cent.

Furniture

Trump used Section 232 of the Trade Expansion Act of 1962 to hit imports of upholstered wooden furniture, cabinets and vanities with 25 per cent tariffs beginning in October 2025.

Heavy-duty trucks

Trump used Section 232 of the Trade Expansion Act of 1962 to implement a 25 per cent tariff on imported medium- and heavy-duty trucks in November 2025.

There is a CUSMA carveout for Canada. Only the non-American components of a vehicle face the duties.

Semiconductors

Trump imposed a 25 per cent tariff on a narrow range of semiconductor imports in January.

Pharmaceuticals

In July, Trump implemented tariffs of up to 100 per cent on branded pharmaceuticals imported into the U.S.

The tariffs did not have a major impact on Canada.

Trump has said generic drugs will also face a 100 per cent tariff as of Aug. 1, 2028, which will rise to 200 per cent a year later.

Other threatened tariffs

Trump escalated his trade war with Canada earlier Monday, this time threatening to hike tariffs on all vehicles, auto parts and steel from Canada to 50 per cent on Jan. 1.

The new threat of tariffs for Jan. 1 would build on existing tariffs on the auto and steel sector, and are separate from the tariffs applied on Saturday.

On Monday, Trump also threatened on social media to stop transporting Canadian electricity, oil and gas through the U.S.

Trump has also threatened a wide-range of other tariffs, including on movies and aircraft, that have yet to go into place. The U.S. Department of Commerce has launched trade investigations into some of these goods.

This report by The Canadian Press was first published Aug. 24, 2026.

-With files from Kelly Geraldine Malone in Washington and The Associated Press

The Canadian Press staff