U.S. President Donald Trump announced Monday that his administration will proceed with a 25% tariff on most Canadian goods next week, ending a month-long pause on the controversial trade measure.
“The tariffs are going forward on time, on schedule,” Trump told reporters during a White House press conference with French President Emmanuel Macron. “This is an abuse that took place for many, many years. The tariffs will go forward, yes, and we’re going to make up a lot of territory.”
Earlier this month, Trump threatened sweeping tariffs on Canadian goods—with the exception of energy exports, which would face a 10% tariff—claiming Canada had been taking advantage of the U.S. for years.
Following pushback from Prime Minister Justin Trudeau, Trump initially paused the tariffs after Canada increased border security and stepped up efforts to curb illegal migration and drug trafficking into the U.S.
Despite these efforts—including a 90% drop in illegal border crossings and a significant increase in fentanyl seizures by Canadian border officials—Trump now says the pause is over.
Economists warn that tariffs of this magnitude could push Canada into a recession, causing severe economic disruptions across major industries.
In addition to the 25% tariff on most goods, the U.S. administration is also considering additional tariffs on key industries, including:
- Steel
- Aluminum
- Auto imports
If imposed, these additional tariffs would stack on top of the 25% baseline, further straining trade between the two countries.
Trump has repeatedly claimed that the U.S. has a $200 billion trade deficit with Canada, referring to it as a “subsidy” that must be corrected.
However, official U.S. government data shows that the actual goods trade deficit was $63 billion USD as of December 2024. Furthermore, when oil exports are excluded, the U.S. actually runs a trade surplus with Canada.
Despite Canada’s efforts to address Trump’s stated concerns, the tariffs appear set to move forward, with major economic consequences looming for Canadian businesses and consumers.