Canada USA Tariff Updates

As tariffs between Canadian goods entering the USA, and American goods entering Canada come into effect and as the situation continues to develop, a number of organizations that we are affiliated with are dedicated to providing resources, updates, and key information for the business community.

Tariffs are a tax on imported goods, paid by the importer (typically a company, but also applied to individuals). The cost of the tariff is generally passed on to the consumer through price increases as the cost to acquire the product, or the materials to create the product, has increased. Tariffs are used by governments to protect domestic industries so that locally manufactured goods and materials remain competitive in the market. They can also be used, as we have seen recently, as a negotiating tactic to either strengthen ties, or to achieve cooperation in other areas.

The top recommendation from industry experts for business owners is to review your supply chains and explore new markets.

We are linking this helpful information below, please check back as the situation develops:

• Supporting Canadian exporters through United States tariff challenges (Trade Commissioner Service)
• Canada announces new support for Canadian businesses affected by U.S. tariffs (Department of Finance Canada)
  • Performance-based remission framework for automakers, which will allow automakers that continue to manufacture vehicles in Canada to import a certain number of U.S assembles, CUSMA compliant vehicles into Canada, free of the countermeasure tariffs that Canada has imposed.
  • The government intends to provide temporary 6 month relief for goods imported from the U.S. that are used in Canadian manufacturing, processing and food beverage packaging, and for those used to support public health, health care, public safety, and national security objectives. The remission is provided on a time limited basis to provide businesses and entities with additional time to adjust their supply chains and prioritize domestic sources of supply, if available.
  • The new Large Enterprise Tariff Loan Facility, as announced by the Prime Minister in March, is now accepting applicants. This program will support eligible large businesses (including those that contribute to Canada’s food security, energy security, economic security and national security) that are facing difficulties in accessing traditional sources of market financing, by providing access to liquidity
• U.S. Tariffs: What’s Next? 5 Ways Small and Medium Sized Canadian Businesses Can Navigate Uncertainty (RBC)
• Canada US Engagement (Government of Canada)
• List of products from the United States subject to 25 per cent tariffs effective February 4, 2025
• Customs Notice 25-03: United States Surtax Order (2025)
• Canada-US Core Facts
• Sample Key Messages for business (Global Affairs Canada)
• A US-Canada Trade Shock now in play, first economic takeaways (RBC)
• Investment Key Messages (Government of Canada Trade Commissioner Service)
• Foreign Direct Investment, Key Facts (Global Affairs Canada)
• Trade Tracker (Canadian Chamber of Commerce)
• Partners in Prosperity Report (Canadian Chamber of Commerce)
• Excellence in Manufacturing Consortium Canada US Trade Relations Edition of Member Needs Help, open to all Canadian Manufacturers for a limited time.

Existing funding programs can be leveraged to help companies adapt to new uncertainties:

• Regional Development Agencies (ie. FedDev Ontario): These agencies continue to support high-growth companies looking to expand internationally or pivot into new markets. Government of Canada has committed to providing more funding to these agencies so they can better support businesses at this time.
• CanExport SME: This longtime program helps businesses expand into new markets, and can be used to support companies in developing markets beyond the U.S. The program has reopened for projects starting April 1, 2025 and will provide up to $50,000 in support.

Beyond funding programs, several government agencies and financial institutions are stepping up to support businesses affected by tariffs:

• Trade Commissioner Service (TCS) will continue their work in helping companies identify new markets and facilitate internal expansion to navigate disruptions.
• Canada Small Business Financing Program will make it easier for small businesses to get loans from financial institutions by sharing risk with lenders.
• Export Development Canada (EDC) Trade Impact Program is deploying $5 billion over two years to assist exporters in reaching new markets.
• Business Development Bank of Canada (BDC) is allocating $500 million in favorably priced loans to sectors directly affected by tariffs, in addition to offering advisory services.
• The Government of Canada is establishing a Tariff Remission Process; a framework for businesses to request tariff remission on certain U.S. imports.
• Employment and Social Development Canada has introduced temporary flexibilities to EI Work-Sharing Program to enhance access and extend maximum agreement durations for employees who reduce work hours due to decreased business activity.
• The Government of Canada has a comprehensive suite of information and services to support businesses in their plans to expand into new markets

Check out our partners at the Brockville & District Chamber of Commerce for additional tariff related information for your business. 

Mutually beneficial impact of Canada-United States Trade (Global Affairs Canada):

• The United States and Canada share one of the strongest and most close-knit relationships between any two countries, particularly in areas such as border security, economic security, and trade.
• Imposing tariffs on Canadian products would have a detrimental impact on United States consumers, workers, and the United States economy
• Canada is the largest export market for 36 states and ranks among the top three for 46 states, with 43 states exporting over US$1 billion to Canada each year.
• United States industries benefit from imports from Canada, which strengthen their competitiveness. Canada plays a key role in supporting United States manufacturing, with approximately 70% of Canadian exports to the United States being used in the production of other goods.
• Canada is also a significant buyer of US goods.
• Ultimately, the United States is more prosperous and secure when it collaborates with its closest strategic ally and economic partner, Canada.

What can you do as a consumer?

Buy local, shop small, and buy Canadian. Small, independent, locally owned businesses keep our city vibrant and they can use our help. Make and effort to support your favourite local businesses, and try out some places you have been meaning to go to.

Tell us about your local favourites and what you are doing to support local with our Community Strong: Share Your Love for Local campaign!