Canada-U.S. Tariff Timeline 2025

Trade, Tariffs, and Cash Management for the Self-Employed Canadian

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Published October 16, 2025  |  Updated January 16, 2026

Understanding Key Terms

I've done my best to explain the following trade terms based on my research, but I'm not an import/export expert. If you're actually importing steel, definitely check with a customs broker who knows the ins and outs of these regulations.

What are FTA and non-FTA countries?

FTA (Free Trade Agreement) countries are nations that have signed trade agreements with Canada, providing preferential access to Canadian markets. For steel imports, this category includes:

• FTA countries (non-CUSMA): South Korea, European Union members, United Kingdom, Japan, Vietnam, and others with bilateral or multilateral trade agreements.
• CUSMA countries: United States and Mexico (these have separate treatment under the Canada-United States-Mexico Agreement).

Non-FTA countries are nations without free trade agreements with Canada. Key examples include China, Turkey, India, Russia, Brazil.

The distinction matters significantly for steel imports, as FTA countries receive more favorable quota allocations and tariff treatment than non-FTA countries.

What are tariff-rate quotas (TRQs)?

A tariff-rate quota (TRQ) is a two-tiered import control system for certain steel products. It works by allowing a specific quantity of steel to enter the country each quarter at a lower tariff rate. Once imports exceed this quarterly threshold, any additional steel brought in during that quarter faces a higher surtax.

This mechanism serves a dual purpose. It protects Canada's domestic steel industry from excessive foreign competition (mainly due to global steel overproduction) while ensuring Canadian businesses still have access to the steel they need. The government has based these quota levels on 2024 import volumes.

How do import permits work with TRQs?

All steel imports to Canada require a permit, but there are two types:

1. Shipment-specific permits allow imports at normal tariff rates (if within quota). It must be applied for up to 15 days before shipment arrival. These permits are issued on a first-come, first-served basis until the country's quota is exhausted.

2. General Import Permits (GIP) are used when shipment-specific permits are unavailable or quota is exhausted. Steel imported under GIP automatically faces the 50% surtax.

All importers must also declare the Country of Melt and Pour (COM) and have an active Export and Import Permits Act (EIPA) registration number from Global Affairs Canada.

For Example - Non-FTA Country (China):
A Canadian manufacturer importing steel from China in Q1 2026 faces a quarterly quota of 20% of their 2024 volumes. If they imported 1,000 tonnes in 2024, their Q1 quota is 200 tonnes. They must apply for shipment-specific permits at least 15 days before arrival. If they secure permits for their first 200 tonnes, they pay normal tariffs. Once China's quota is exhausted, they must use a General Import Permit for any additional steel, automatically triggering the 50% surtax.

Example - FTA Country (South Korea):
A construction company importing from South Korea has a quarterly quota of 75% of 2024 volumes. If they imported 2,000 tonnes in 2024, their Q1 2026 quota is 1,500 tonnes. With shipment-specific permits secured in advance, they avoid the surtax on the first 1,500 tonnes. Any imports beyond this, or if permits aren't available, require a General Import Permit and face the 50% surtax.

You'll see TRQs referenced in the steel-related entries below.

Table of Contents

Dealing With The New Normal of Tariffs Series

What's Happening

This series explains what's changing and how to plan, not panic.

It's 2025 and U.S. trade is rupturing the old ways of doing business between countries. As a result, the U.S. trade policy changes are reshaping how Canadian solopreneurs import, export, and price their products ... sometimes overnight. 

New to tariffs? Start with the Primer.

Table of Contents

Cash Management Strategies To Protect Your Margins

Protect Your Money

Tariffs squeeze margins by raising costs on supplies, packaging, parts, and shipping ... sometimes overnight. These strategies help you preserve cash flow and stay compliant while costs shift.

The Tariff Series explains what's changing. This series shows how to protect your business margins while it does.

Tracking tariffs already? Jump to the autopilot system.

Table of Contents

From Financial Stress to Success Series

Protect Yourself

Financial stress doesn't just affect your bottom line. It clouds your judgment, drains your energy, and can lead to business-threatening avoidance. This series gives you practical strategies for managing both the numbers and the emotions that come with them, so you can build a business that sustains you instead of burning you out.

Quick FAQ

Whether you call yourself a solopreneur, a freelancer, a small business owner, or self-employed, here are common questions about how tariffs affect you ... even if you don't import directly.

Tracing History - Trade Tariff Developments Archive

This section provides context and analysis of significant trade policy shifts as they unfold, helping you understand the changing Canada-U.S. trade relations. 

Jump To >> Latest Update: Canada-China Trade Deal Signals Major Shift January 16, 2026

October 24, 2025
Canada's Trade Strategy Takes Shape

Prime Minister Carney spoke to University of Ottawa students on Wednesday, October 22, 2025. CBC News reported that during his pre-budget speech, he told students to prepare for "challenges" and "sacrifices" and said transforming Canada's economy won't happen "easily or in a few months".

He acknowledged the changing nature of the Canada-U.S. trade relationship and announced the government aims to double non-U.S. exports over the next decade. Regarding the budget, he indicated that a climate competitiveness strategy, a new immigration plan, and an international talent-attraction strategy would be presented.

Carney also acknowledged the trade situation will slow some government initiatives. "There are certain demands or desires to expand in different areas, and we won't be able to move as quickly as we otherwise would."

My Takeaway Quote: "If we don't act now, the pressures will only grow ... I will always be straight about the challenges that we have to face and the choices we must make. And to be clear, we won’t transform our economy easily or in a few months — it will take some sacrifices and it will take some time."


The following day, the Toronto Star reported that Prime Minister Carney admitted a broader trade agreement with Trump "is no longer within reach" and that auto tariff talks will likely be punted to next year's CUSMA review. The trade team is currently working on sector-by-sector negotiations for steel, aluminum, "elements" of energy, and "a few other components". In French, the Prime Minister said Americans are only interested in sectoral agreements with all countries, not just Canada.

Carney also issued what the Toronto Star called a "veiled threat", saying if Canada cannot get fair access to the U.S. market, Ottawa will "change the terms" of its commercial relationship with the U.S. "but we're not there yet". He added: "If we ultimately don't make progress in these various sectors, we're going to do what's necessary to protect our workers ... starts with building, taking the control there, but it's also not having unfair access to our market if we don't have access to another market."

Later that afternoon (October 23, 2025), the federal government announced Stellantis and GM would no longer be eligible for the full tariff exemption on autos shipped to Canada. Their exemptions would be reduced to 50% and 24.2% respectively as they failed to maintain Canadian-based production and failed to complete plans that were already in place.

That night (October 23, 2025), the Trump administration announced it was cancelling trade talks with Canada, citing the 'Ronald Reagan' ads being run in the U.S. by the Ontario government.

Read the full news reports: 
CBC News: Carney says Canada should prepare for 'sacrifices' (October 22, 2025) 
Toronto Star: Mark Carney admits broader trade deal won't happen anytime soon (October 23, 2025)

October 8, 2025
Trade Talks Update - The Direction Becomes Clearer

One day after Prime Minister (PM) Carney visited the Oval Office ... and after months of silence, we're finally getting some public signals about where trade talks are heading.

U.S. Commerce Secretary Lutnick says there's no going back to the old free-trade system and that America wants to assemble all its own cars (though they'll still import parts). He's clear about the U.S. pursuing an "America first, Canada second" approach, though Canada can still benefit from proximity in other industries - just not car assembly.

PM Carney agrees the era of deepening North American integration is over - "nostalgia isn't a strategy," he said. While CUSMA remains our best deal with the U.S., expect bilateral sector-by-sector agreements alongside it.

Both sides agree on one thing: the old system isn't returning. For Canadian small businesses, this means the uncertainty continues, but at least the range of possibilities is becoming clearer.

Learn More >> Globe and Mail No going back to former free trade system, Lutnick says (October 8, 2025)

August 22, 2025
Canada Removes Some Retaliatory Tariffs While U.S. Expands Coverage

Lots of tariff news on this summer Friday!

U.S. Tariffs Expand: The U.S. expanded tariffs to 407 steel derivative products - "from wind turbines to baby strollers - catching even industry associations off guard".

Canada's Move: Meanwhile, Prime Minister Carney announced Canada is removing retaliatory tariffs on U.S. products that comply with CUSMA rules, while keeping tariffs on steel, aluminum, and autos. Trade negotiations are resuming.

What This Means for Your Business:

• If you import CUSMA-compliant U.S. goods, your tariff costs may drop. I'm thinking the cost of orange juice will come down.
• New derivative products face tariffs you might not have expected. Some purchases are about to get way more expensive!
• Steel, aluminum, and auto sectors remain under pressure. Expect more changes to come as negotiations continue and CUSMA negotiations are set to begin earlier than required.

This shows why small business owners need good tracking systems and flexible supply chains even more than in the past. Trade rules are changing faster than ever.

Learn more >> CBC News Canada removing retaliatory tariffs on CUSMA-compliant U.S. goods (August 22, 2025)

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