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Canada Responds to U.S. Tariffs – What Businesses Need to Know

February 1, 2025, President Trump signed an executive order (the “Executive Order”) that, in blatant contravention of the Canada-United States-Mexico Agreement signed during his first term, applies tariffs of 25% on all goods originating in Canada and imported into the U.S. except “energy and energy resources”, which will instead be subject to a 10% tariff. These tariffs will go into effect at 12:01am on Tuesday, February 4. President Trump also signed a second Executive Order that placed a 25% tariff on all goods originating from Mexico, including all energy and energy resources, however the implementation of those tariffs have been delayed by at least a month. As discussed in our prior client alert, these measures follow the announcement by President Trump on inauguration day that tariffs would be imposed on Canada and Mexico on February 1st. 

Please refer here for our complete article detailing existing measures.

McCarthy Tétrault’s International Trade and Investment Law Group has advised, and continues to advise, a large number of clients in a variety of industries on how to navigate the uncertainty caused by the U.S. tariffs and the Canadian countermeasures. We will continue to monitor and report on any further developments in this space and expect the next client alert will provide more details on how these measures can impact supply chains and what strategies could be used to address these impacts. 

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