Trump’s tariffs on Canada: What you need to know

As tensions escalate between the U.S. and Canada, President Trump's 25% tariff on Canadian goods and 10% tariff on oil raise serious concerns about the future of trade relations.

Trade tensions between the United States and Canada have escalated as President Donald Trump follows through on his word to impose sweeping tariffs on Canadian exports.

Under the latest policy, Canadian goods will be subject to a 25% tariff, while oil and gas exports face a 10% tariff. Trump has stated that these tariffs are a purely economic decision aimed at benefiting the U.S. economy, rather than a negotiating tool.

The tariffs function as a tax that raises the price of imported goods and services, making them less appealing to domestic consumers. This move is part of a broader strategy by the Trump administration aimed at boosting U.S. manufacturing and reducing dependence on foreign imports.

Specifically, the tariffs target key industries such as manufacturing, energy, and natural resources—sectors that are among Canada’s top exports. Trump’s strategy aims to make imported goods more expensive, thereby making domestic products not only more attractive to U.S. consumers but also enticing to companies to relocate their operations to the U.S.

This poses a particular challenge to the trade relationship as it pertains to oil and gas. For obvious reasons, the Canadian oil sands cannot simply be picked up and relocated to the U.S., meaning the tariffs on oil exports disproportionately hurt both Canadian producers and U.S. consumers, who rely heavily on Canadian energy supplies.

One of Trump’s key arguments in the tariff discussions is that the U.S. subsidizes Canada, but this misrepresents the trade relationship. While Canada does maintain a trade surplus with the U.S., it is not a subsidy but rather a natural outcome of market dynamics. However, it is true that the U.S. shoulders the responsibility of defending Canadian airspace and Arctic waters, partly due to the Canadian federal government’s failure to meet NATO defence targets in recent years.

Despite the aggressive tariff measures, it’s crucial to point out that Canada’s oil sands and other key exports are irreplaceable, and the impact on the Canadian economy may ultimately outweigh the benefits for the U.S.

While concerns have been raised about the inconsistency in Trump’s tariff approach, particularly the 25% tariffs on Canada versus 10% on China, this overlooks an important pre-existing factor: U.S. tariffs on Chinese goods already range from 25-50%, including critical minerals, and up to 100% on electric vehicle imports.

The political fallout from the tariffs has been a melting pot over the last few weeks. Canada’s federal and provincial leaders claim to be united under a ‘Team Canada’ approach that has reacted with undiplomatic counter-tariffs, while some provincial leaders, particularly Alberta Premier Danielle Smith, have called for a more pragmatic, cooperative response.

Rhetoric in the mainstream media prompted White House Press Secretary Karoline Leavitt to criticize the approach, spearheaded by Canada’s outgoing Prime Minister. "Justin Trudeau would be wise to speak directly with President Trump before making outlandish comments," she said.

The ongoing tariff dispute highlights the critical need for strong U.S.-Canada trade relations, especially given Canada’s heavy reliance on U.S. markets. One thing is clear: this situation has finally forced the political class to confront long-neglected issues like trade policies, energy independence, crime, border security, and mass immigration—topics that have been ignored for years, leaving everyday Canadians feeling sidelined.

While Trump’s decision to pause tariffs with Mexico shows that diplomacy can work, Canada’s current political gridlock and lack of effective diplomacy make it seem unlikely that a resolution is anywhere near.

The tariffs are an immediate economic challenge for a struggling Canada, adding more taxes on top of an already burdened population, where taxes have already outpaced the cost of all basic necessities combined, and the affordability crisis remains unchecked.

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Tamara Ugolini

Senior Editor

Tamara Ugolini is an informed choice advocate turned journalist whose journey into motherhood sparked her passion for parental rights and the importance of true informed consent. She critically examines the shortcomings of "Big Policy" and its impact on individuals, while challenging mainstream narratives to empower others in their decision-making.

COMMENTS

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  • Robin Dutton
    commented 2025-02-03 17:46:01 -0500
    Lets reduce this to school yard terms because that’s what this issue has devolved into.
    There’s this kid that no one likes because he is always yapping his mouth about things he really doesn’t understand, if he would just listen to others, things would go much better for him.
    He finds himself surrounded by ten bullies, he is out numbered 10 to 1, rather than be diplomatic and try and find common ground he insults the head bully repeatedly. What do you think happens to this kid?
    Not many like the head bully but if you’re nice to him, he may just be nice to you.
  • Bruce Atchison
    commented 2025-02-03 17:11:04 -0500
    These bozos want to play Chicken with Trump. But he’s driving a monster truck while they’re driving a Neon.
  • Paul Scofield
    commented 2025-02-03 14:52:22 -0500
    I think that it is telling that the first thing the Tredeau government did at the discussion of needing to seal the joint border against dope and illegal aliens or face a 25% tarrif was to pivot straight to tarrifs and use them as a campaign issue to rally Canadians. Despotic and shameless, Trudeau, Freeland and their ilk know that in a straight up Federal election against Mr. Poilievre, they would be swept from power.

    Were steps taken to seal the border as desired, tarrifs would likely not have come into play. That, however, would not serve the Left’s real purpose(s).