Quote
U.S.-Canada Tariffs Take Effect

The United States and Canada have recently imposed reciprocal tariffs affecting a wide range of goods. These measures are poised to impact businesses across various sectors in both countries.
On February 4, 2025, the U.S. imposed a 25% tariff on Canadian imports. In response, Canada introduced retaliatory tariffs, also effective February 4, 2025, placing a 25% duty on U.S. goods valued at $30 billion CAD, including food and beverage products, appliances, and apparel.
Additionally, Canada announced plans for an expanded 25% tariff package worth $125 billion CAD on products such as vehicles, steel, aluminum, aerospace goods, and agricultural products, pending a 21-day consultation period.
Summary of Recent Tariff Developments - Key Details:
- Tariff Rates: Both the U.S. and Canada have implemented a 25% tariff rate on selected imports.
- Implementation Dates: Initial tariffs from both nations took effect on February 4, 2025.
- Canadian Countermeasures: Canada’s $30 billion CAD tariff package immediately targets consumer goods, while an additional $125 billion CAD tariff package is in consultation.
- Affected Commodities: A wide range of products, including food, beverages, consumer goods, vehicles, steel, aluminum, aerospace products, and agricultural items. (link to list below)
Impact on KWE Businesses:
- Supply Chain Disruptions: Companies engaged in cross-border trade may experience increased costs and logistical challenges. Work with your local KWE representative to discuss any required changes to navigate the challenges posed by these trade policy changes.
- Higher Costs: Businesses and consumers could face price hikes for affected goods.
- Strategic Adjustments: Companies may need to explore alternative sourcing strategies, renegotiate contracts, or adjust pricing models.
- Review Supply Chains: Our team of experienced supply chain experts can identify vulnerabilities and explore alternative solutions.
- Stay Informed: Monitor official announcements and consult trade experts for compliance guidance.
KWE will continue to provide timely updates and support to ensure the continuity of your cargo operations. For further assistance, please contact your local KWE representative.
Additional Resources:
Tariff Products List:
CDN Remission Request Process:
Sources:
- https://www.edc.ca/en/article/tariffs-impact-canada-exporter.html
- https://www.canada.ca/en/department-finance/news/2025/02/government-of-canada-announces-next-steps-in-its-response-plan-to-unjustified-us-tariffs.html
- https://www.canada.ca/en/department-finance/news/2025/02/canada-announces-155b-tariff-package-in-response-to-unjustified-us-tariffs.html
- https://www.aljazeera.com/economy/liveblog/2025/2/2/trump-tariffs-live-canada-mexico-hit-back-as-china-vows-countermeasures
- https://www.theguardian.com/business/2025/feb/02/trump-tariffs-markets-brace-for-falls-mexico-canada-hit-back

Contact Us
Our experts are ready to help. Get in touch and we'll find the solution you need.