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Canada-U.S. Tariff Timeline 2025
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Tariff timeline + strategies to protect your businessPublished October 16, 2025
By L.Kenway BComm CPB Retired
This is the year you get all your ducks in a row! Start by starting.
Consistency Not Perfection
Sustainable habits beat extreme measures. Your approach to navigating tariff uncertainty.
Updated October 6, 2025
Overview 2025 U.S.-Canada trade conflict
TRADE TIMELINE: KEY DATES
On this Trade Timeline I'm tracking and updating tariff announcements made by the Canadian and U.S. governments. Do any affect your business?
Legend: 🇺🇸 U.S. Action | 🇨🇦 Canadian Action | 📊 Review/Consultation
Status: 🔴 Escalation | 🔵 Ongoing | 🟢 Reduction | ⚫ Ended
🔴 ACTIVE ESCALATIONS (Watch These Closely)
🇺🇸 March 4, 2025 - U.S. Tariffs Take Effect
25% on Canadian goods (increased to 35% Aug 1); 10% on energy; CUSMA-compliant goods exempt
🇺🇸 March 12, 2025 - Global Steel/Aluminum Tariffs
50% U.S. tariffs on steel/aluminum (originally 25%, increased June 4)
🇺🇸 August 1, 2025 - US Tariff Escalation
U.S. tariffs on Canadian goods increased from 25% to 35%
🇺🇸 August 1, 2025 - Global Copper Tariffs
50% U.S. tariffs on copper products
🇺🇸 August 29, 2025 - Global De Minimis Elimination
All packages under $800 now subject to duties; transitional flat rates $80-$200 or ad valorem
🇺🇸 October 1, 2025 - US Tariff On Drugs
Announced September 26, 2025 that U.S. will tariff pharmaceutical drugs 100%. While he said October 1st, the date of implementation is not clear until Executive Order is issued ... so watch for it! Status: 🔴 Pending
🇺🇸 October 14, 2025 - US Tariff on Lumber and Wood Products
U.S. Section 232 additional 10% tariffs on imported timber and lumber. This is in addition to the U.S. anti-dumping and anti-subsidy tariffs of about 35% already faced. In addition, there will be a 25% tariff on kitchen cabinets, bathroom vanities and upholstered furniture. The executive order does not mention an exemption under CUSMA.
🇺🇸 November 1, 2025 - US Tariff on Trucks
25% global tariff on medium and heavy-duty trucks takes effect (announced October 6, 2025). This tariff applies to vehicles including delivery trucks, garbage trucks, public utility trucks, transit and school buses, tractor-trailers, and heavy-duty vocational vehicles; even those meeting CUSMA's 64% North American content threshold.
🇺🇸 January 1, 2026 - US Tariff Increases
30% on upholstered wooden products; 50% on kitchen cabinets/vanities. Status: 🔴 Scheduled
🔵 ACTIVE MEASURES (Ongoing)
🇨🇦 🇺🇸 March 7, 2025 - CUSMA Exemption Established
Canadian goods meeting CUSMA origin rules remain tariff-free
🇨🇦 March 13, 2025 - Canadian Steel/Aluminum Retaliation
25% Canadian tariffs on U.S. steel/aluminum (still in effect)
🇺🇸 April 3, 2025 - Global Auto/Auto Parts Tariffs
25% U.S. tariffs on vehicles and parts; only applies to non-CUSMA content (still in effect)
🇺🇸 April 5, 2025 - Global U.S. 'Liberation' Tariffs
10% baseline reciprocal tariff on all U.S. imports (global, excluding Canada and Mexico)
🇨🇦 April 9, 2025 - Canadian Auto Retaliation
25% Canadian tariffs on non-CUSMA U.S. vehicles (still in effect)
🇨🇦 June 27, 2025 - Canadian Steel Quotas
50% surtax on steel imports from non-FTA partners without permits
🟢 REDUCTIONS & ⚫ REMOVALS
🇨🇦 March 4, 2025 - Canadian Phase 1 Retaliation
25% Canadian tariffs on $30B on targeted U.S. goods (⚫ Removed Sept 1)
🇨🇦 March 13, 2025 - Canadian Consumer Goods Retaliation
25% Canadian tariffs on $14B miscellaneous U.S. products (⚫ Removed Sept 1)
🇨🇦 September 1, 2025 - Canadian Tariff Reduction
Canada removed $44B in retaliatory tariffs; kept steel, aluminum, auto tariffs (Status: 🟢 Reduced)
📊 REVIEWS & CONSULTATIONS
🇺🇸 September 16, 2025 - USCMA Public Consultations
US government begins 45 days of public consultations with hearings planned for November.
🇲🇽 September 17, 2025 - T-MEC Public Consultations
Mexican government calls for 60 days of public comment ahead of schedule 2026 review.
🇨🇦 September 19, 2025 - CUSMA Public Consultations
Federal government begins a few weeks of consultations with companies, unions, Indigenous leaders, and other stakeholders to prepare for 2026 CUSMA renegotiation. Canada already held formal public consultations between August 17 - October 31, 2024. They published a 'What we heard' report in December 2024 / January 2025.
🇨🇦🇺🇸🇲🇽 July 1, 2026 - CUSMA / USCMA / T-MEC Review
Scheduled review of trade agreement
This timeline focuses on the 2025 U.S.-Canada trade conflict. Other ongoing trade disputes affecting Canadian businesses include longstanding U.S. softwood lumber duties (escalated to over 35% in August 2025 as part of the current trade conflict) and China's retaliatory tariffs on Canadian canola, potash, and other agricultural products as well as seafood (imposed in response to Canada's support for U.S. EV policies and other geopolitical tensions).
For complete details and source documents, refer to:
Baker Tilly: Trade Timeline Analysis
Blake, Cassels & Graydon LLP: U.S.–Canada Tariffs Timeline
Table of Contents
Dealing With The New Normal of Tariffs Series
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.
Timeline, tariff guides, and cash strategies
Whether you think you can or you think you can't, you're right.
Henry Ford
Table of Contents
Cash Management Strategies To Protect Your Margins
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 ↓
An Easy Plan To Build Financial ResilienceQuick FAQ
Common questions about how tariffs affect Canadian solopreneurs ... even if you don't import directly.
What are tariffs?
What are tariffs?
Tariffs are extra charges on goods that cross a border. With recent U.S.–Canada changes in policy and relationship, these fees can pop up fast and raise costs. Even if you never import or export, tariffs can still touch your business through higher prices on supplies, packaging, parts, or shipping ... and that affects your margins.
Here's an example of what could happen. A Toronto Etsy seller sources packaging from a U.S. supplier. In March, her per-unit cost jumped 35%. She didn't import anything ... but her supplier did, and passed the tariff along.
I don’t import. Do tariffs still matter?
I don’t import. Do tariffs still matter?
Yes. Even if you don't import directly from the U.S., your suppliers may raise prices on what you buy as they pass their import fees along.
Be aware that faced with increased costs and reduced profit margins, some businesses may be forced to downsize or lay off workers. So watch packaging, parts, and shipping fees to see if they are indirect import fees are affecting your budget.
Are tariffs the same as GST/HST?
Are tariffs the same as GST/HST?
No. Tariffs/duty are border charges. GST/HST is tax. Plan for both when you set prices.
The economic reality? When the U.S. Administration uses tariffs primarily for revenue generation rather than trade protection, they function essentially as a consumption tax paid by domestic businesses and consumers. This revenue can offset other tax reductions, but tariffs are less efficient than VAT (value added tax) systems at raising revenue while creating more economic disruption.
Will my U.S. customers pay more on delivery of my physical goods? I also sell services/digital products. Do tariffs affect that part of my business?
Will my U.S. customers pay more on delivery of my physical goods? I also sell services/digital products. Do tariffs affect that part of my business?
Physical Goods
The Trump Administration ended duty free shipping (de minimis) on August 29, 2025. This affects all Canadian businesses shipping to U.S. customers. So yes, your U.S. customers will pay more on the delivery of physical goods.
Canada Post reported on August 27, 2025 that every package under $800 going from Canada to the U.S. must have proof that duties were paid before the shipment can be accepted for delivery.
More >> What Just Changed and Why It Matters
Services and Digital Products
Services and digital products are not directly impacted by de minimis. However your costs like tools and equipment may rise if suppliers face tariffs.
What records should I keep?
What records should I keep?
Invoices, shipping bills, and any duty/tax receipts—one folder per order. Be sure to also include supplier certificates, classification rulings, and CBSA correspondence. Keep for at least seven years.
Create and maintain an 'origin binder' (physical or digital) per SKU (stock keeping unit) with bills of materials and supplier origin attestations so recertifying for CUSMA is quick.
Keep documentation for at least seven years.
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