---
title: The U.S. and Canada Implement Reciprocal Import Tariffs Starting February 4
description: Effective February 4, 2025, Trump’s 25% import tariffs on Canadian and Mexican goods will be implemented, and Canada will launch 25% retaliatory tariffs.
image: https://blog.coleintl.com/hubfs/Images/Trade%20News%20pictures/Free%20trade%20(2).png
---
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# The U.S. and Canada Implement Reciprocal Import Tariffs Starting February 4
Trade Update: February 3,2025
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The U.S. and Canada Implement Reciprocal Import Tariffs Starting February 4
5:21
**The long-term effects of the two-way import tariffs between the U.S. and Canada remain unclear, but they are already reshaping trade policies and economic strategies on both sides of the border.**
On February 1, 2025, U.S. President Donald Trump officially announced the [implementation of 25% import tariffs](https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-imposes-tariffs-on-imports-from-canada-mexico-and-china/) on goods from Canada and Mexico, along with an additional 10% tariff on imports from China. Energy resources from Canada will be subject to a reduced 10% tariff.
The import tariffs will take effect on February 4, 2025, and are expected to impact a wide range of products imported from Canada into the U.S.
This move comes despite Canada’s position as the top customer for U.S. goods and services exports. Canada purchases more U.S. goods than China, Japan, France, and the United Kingdom combined.
Moreover, bilateral trade supports millions of jobs in Canada and the U.S., with [over $2.5 billion worth of goods and services](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) crossing the border daily.
In response to Trump’s import tariffs, outgoing Prime Minister Justin Trudeau announced that Canada would implement a retaliatory [25% tariff plan on U.S. imports](https://www.supplychaindive.com/news/Canada-retaliates-US-tariffs/738972/). The Canadian tariffs, covering goods valued at $155 billion, will also take effect on February 4, 2025.
Canada plans to introduce its import tariffs in phases, starting with an immediate $30 billion, followed by an additional $125 billion within three weeks.
According to Trudeau, this phased approach is intended to give Canadian companies and supply chains [time to explore alternative sources](https://www.cnbc.com/2025/02/02/it-doesnt-have-to-be-this-way-canada-mexico-and-china-respond-to-trumps-tariffs.html).
During a press conference in Ottawa, where he announced Canada’s retaliatory tariff plan, Trudeau told Canadians that the upcoming weeks would be challenging, and that Trump's actions would also affect Americans.
## **Canada introduces the United States Surtax Order**
[Customs Notice 25-03](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-03-eng.html) was published yesterday by the Canada Border Services Agency (CBSA) to provide details on the implementation of the [United States Surtax Order (2025)](https://orders-in-council.canada.ca/attachment.php?attach=46660&lang=en).
This order, which comes into effect on Tuesday, was introduced in response to the U.S. imposing tariffs on Canadian imports.
According to the order, the 25% surtax will be calculated based on the value for duty of the imported goods, as determined under sections 47 to 55 of the Customs Act.
It applies to certain goods imported into Canada that originate from the U.S., whether for commercial or personal purposes. This includes goods that may be classified as tariff items in Chapter 99 of the Schedule to Canada’s Customs Tariff.
However, the surtax does not apply to goods classified under Chapter 98 of the Customs Tariff, with the exception of tariff items 9897.00.00, 9898.00.00, and 9899.00.00. Goods that are temporarily imported for repair in Canada or those that are re-imported after repair are also exempt from the surtax.
## **Mixed reactions to the import tariffs**
In Canada, industry leaders have voiced mixed reactions.
Tobi Lutke, CEO of Shopify, [criticized the Canadian government’s retaliatory tariffs](https://nypost.com/2025/02/02/us-news/shopify-ceo-defends-trump-tariff-demands-slams-trudeau/), arguing that collaboration with the U.S. would be more beneficial for Canada’s economy. He warned that this could hurt Canadian businesses and consumers more than it helps.
On the other hand, Doug Ford, Premier of Ontario, took a more assertive stance [in favour of counter tariffs](https://www.theguardian.com/us-news/2025/feb/01/trump-tariffs-canada-mexico-china), stating, “Canada now has no choice but to hit back and hit back hard.”
“Canada has so much of what America needs: high-grade nickel and other critical minerals, energy and electricity, uranium, potash, aluminum. We need to maximize our points of leverage and use them to maximum effect,” Ford added.
In the U.S., some political leaders have [spoken out against Trump’s tariffs](https://www.theguardian.com/us-news/2025/feb/01/trump-tariffs-canada-mexico-china) on Canadian imports and warned of the economic impact on American consumers.
Washington Senator Patty Murray criticized Trump’s tariffs, warning that they will “cost families – literally.”
Speaking to Americans, he said, “It’s not Mexico or Canada or China who pays for these increases, it’s you. And you’ll feel it on your wallet everywhere you shop.”
Colorado Governor Jared Polis has similarly echoed concerns over price hikes, stating, “Trump’s tariffs will be a tax on Coloradans and American families and increase the cost of everything from food to gas.”
## **What’s next for Canadian importers**
Canadian importers must prepare for potential higher costs and supply chain disruptions. Canada is the largest export market for 36 U.S. states and among the top three for 46 states, and so the current situation could significantly impact trade flows.
For now, Canadian importers are advised to:
- Seek alternative sourcing options
- Plan for potential long-term disruptions
- Assess inventory needs and review supply chains
- Evaluate cost increases and consider price adjustments
- Consult a customs broker to discuss trade policy changes
**At Cole International, we’re following this story closely and will keep you updated. Please reach out to one of** [**our trade professionals**](https://www.coleintl.com/contact-us) **to discuss how the new import tariffs might affect your operations.**
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