Trump Announces U.S. Tariffs on Canadian Imports to Commence March 4

As the March 4 deadline approaches, both nations are preparing for the economic and political effects of the looming tariffs. Businesses and consumers on both sides of the border will likely feel the most impact.

President Donald Trump has confirmed that the United States will impose 25% tariffs on Canadian imports starting March 4, 2025.

On Thursday, Trump posted on Truth Social, stating that drugs like fentanyl are being smuggled into the United States from Mexico and Canada at “unacceptable levels."

He also said that much of the fentanyl is being made and supplied by China.

“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” Trump wrote.

The 25% tariffs on imports from Canada and Mexico were scheduled to go into effect in February but were initially paused for 30 days to allow negotiations between the parties. With no apparent progress or further talks, they are set to proceed as scheduled next week.

During a pre-cabinet meeting on Wednesday, Trump told the press that the tariffs would take effect on April 2, 2025. It is unclear if this date refers to the 25% tariffs on Canadian imports, and the White House has not issued an official statement confirming whether or not the tariffs would be postponed again.

Trump’s post on Truth Social, however, stated that the April date referred to the “Second Reciprocal Tariff.”

Canada reaffirms strong response to Trump’s tariffs

Canada will continue to work on avoiding the 25% tariffs on Canadian imports, which Prime Minister Justin Trudeau labelled as “unjustified,” or launch a retaliatory tariff plan.

During a televised press conference in Montreal yesterday, Trudeau stated that Canada did not seek a trade war with its neighbour.

He said, “We will continue to do that work and do everything necessary to avoid these tariffs coming in.”

“But like I said, if on Tuesday there are unjustified tariffs brought in on Canada, we will have an immediate and extremely strong response as Canadians expect,” Trudeau continued.

Trudeau had previously emphasized Canada’s efforts in combating fentanyl trafficking, with a $1.3 billion investment in border security that includes deploying Black Hawk helicopters, drones, and 10,000 patrol personnel along the border.

Ontario vows to fight tariffs on Canadian imports

The trade dispute has also influenced domestic politics in Canada. Ontario Premier Doug Ford was recently re-elected, with a focus on securing a strong mandate to combat the U.S. tariffs on Canadian imports.

Ford has called for unity against the tariffs and expressed his willingness to collaborate with all levels of government to defend Canada’s interests.

Ahead of his victory speech, Ford told CTV News, "I'm very grateful to the people of Ontario, and we're going to make sure we protect the people of Ontario and protect their families and their jobs and businesses.”

“I'll fight tooth and nail against Donald Trump, promise you that," he continued.

Tariffs to impact industries, businesses, and consumers

Imposing tariffs on Canadian imports would hurt consumers, businesses, and even entire industries—on both sides of the border.

"If tariffs get brought in it's going to be hard on Canadians and Canadian businesses — it will also be hard on Americans and American businesses, which is a point we're busy making south of the border every chance we get," Trudeau said.

Earlier this month, Candace Laing, President and CEO of the Canadian Chamber of Commerce, stated, “Tariffs will drastically increase the cost of everything for everyone: every day these tariffs are in place hurts families, communities, and businesses.”

Should the U.S. tariffs take effect and Canada responds, Canada would experience a loss of billions of dollars from its gross domestic product (GDP), which would negatively impact businesses and consumers in Canada and the U.S.

Job losses could be expected, in addition to the possibility of industries that are highly integrated across borders—such as auto manufacturing and agriculture—coming to a standstill.

For Canadian consumers, this means increasing prices of consumer goods, including groceries, appliances, and vehicles.

Please reach out to one of our trade professionals to discuss the potential impact of these tariffs on your business.