Key Facts
US President Trump has threatened to impose 50% tariffs on a large volume of Canadian imports starting August 19. This round of tariffs will no longer exempt products compliant with the Canada–United States–Mexico Agreement (CUSMA), affecting key sectors such as steel and aluminum. Canada is considering setting export quotas for steel and aluminum products in exchange for the US lowering tariffs on those industries, but Carney declined to comment.
Policy & Trade
The White House said this round of tariffs is a response to Canadian provincial restrictions on alcohol, the dairy supply management system, and certain auto quotas. The tariff dispute has lasted more than a year; in early July, the US announced the start of an annual review process that could be renewed every year for up to 10 years. Canada hopes to lower sectoral tariffs, including aluminum, through bilateral negotiations, but the outcome remains uncertain.