U.S. President Donald Trump has been in office for less than a year, but his tariffs on Canada and the rest of the world have already had a major impact.
The growing trade war between the U.S. and Canada has sparked retaliation from Ottawa and the provinces, roiled stock markets and raised recession and inflation fears on both sides of the border. Additional so-called “reciprocal” tariffs on all foreign trading partners is creating further turmoil.
Trump believes tariffs will raise billions of dollars in revenue for the U.S. that will help address the national debt and bring manufacturing and investment back to the country after decades of free trade.
Economists almost universally agree tariffs amount to extra costs for importers and consumers, despite Trump’s promises during his presidential campaign to lower taxes and prices.
The tariffs have led to a wave of patriotism across Canada, and efforts to diversify trade and business contracts away from the U.S. are underway across all levels of government.
Prime Minister Mark Carney has vowed to secure a new trade and security agreement with the U.S., ultimately pushing to remove the tariffs on Canada. That has proven to be a difficult task as Trump sticks to his aggressive trade tactics.
Here are the key announcements and actions Trump has taken since he returned to the White House and launched his trade war with Canada, and how we got here:
Jan. 20, 2025: Trump, speaking after his inauguration as president, says he plans to impose 25 per cent tariffs on Canada and Mexico by Feb. 1. The comment follows through on his initial threat in November that he would tariff both countries due to border security concerns, particularly fentanyl trafficking.
Trump orders the U.S. Commerce Department to study global tariff impacts and trade deficits, with reports due back April 1. He also orders the start of consultations on the impact of the Canada-United States-Mexico Agreement (CUSMA) ahead of a scheduled review of the trade pact in 2026.
Feb. 1: Trump signs an executive order imposing 25 per cent tariffs on Canadian and Mexican goods, with a lower 10 per cent levy on Canadian energy imports, to go into effect at 12:01 a.m. eastern time on Feb. 4.
Feb. 2: Canada announces immediate retaliatory tariffs on $30 billion worth of U.S. goods will go into effect at the same time U.S. tariffs hit, with more tariffs to follow in 21 days, and introduces emergency supports for affected businesses. Provinces and territories say they will remove U.S. alcohol from regulated store shelves and cancel U.S. business contracts in response.
Feb. 3: Trump announces he’s suspending tariffs on Canada and Mexico for 30 days after securing border security commitments from then-prime minister Justin Trudeau and Mexican President Claudia Sheinbaum, hours before the tariffs were to take effect. Trump says the tariffs will resume if Canada and Mexico don’t show progress on reducing fentanyl and irregular migrant crossings into the U.S.
Feb. 13: Trump announces 25 per cent tariffs on all foreign steel and aluminum imports will begin March 12, bringing back a policy from his first term. The White House confirms those will be on top of the 25 per cent blanket tariffs paused on Canada, meaning Canadian steel and aluminum will be tariffed at 50 per cent total.
Feb. 21: Trump signs a memorandum to impose tariffs on countries, including Canada, that levy digital service taxes on U.S. technology companies.
March 4: Trump’s tariffs on Canada and Mexico go into effect at 12:01 a.m. eastern time, after the U.S. president says not enough has been done to address his concerns about fentanyl.
Canada’s retaliatory tariffs on $30 billion worth of U.S. goods kick in immediately, and provinces and territories bring back their own retaliatory measures first announced in February.
March 5: The White House says Trump will exempt the Big Three automakers — Ford, Stellantis and General Motors — from his tariffs on Canada and Mexico until April 2. The companies and autoworker unions had warned Trump’s tariffs would raise prices for vehicles made in North America, where parts and components cross U.S. borders multiple times during manufacturing.
March 6: Trump signs amended orders that exempt all CUSMA-compliant trade with Canada and Mexico, including auto parts, from his tariffs until April 2. Canadian potash duties are also reduced to 10 per cent, to match the ones on energy.
March 11: Trump says he will increase his steel and aluminum tariffs to 50 per cent on Canadian exports in response to Ontario’s 25 per cent surcharge on electricity it sells to the U.S. and Premier Doug Ford’s threat to shut down power exports entirely if tariffs remain. The White House calls Ford’s comments “egregious and insulting.”
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Ford later announces his government is suspending the export tax after securing a meeting with U.S. Commerce Secretary Howard Lutnick, and the White House confirms Trump will back off his threat to hike tariffs.
March 12: Trump’s steel and aluminum tariffs go into effect at midnight. Canada hits back at the U.S. with additional counter-tariffs worth $29.8 billion in response, effective March 13.
March 13: Ford and federal ministers Dominic LeBlanc and Francois-Philippe Champagne meet with Lutnick and other Trump administration officials in Washington. The Canadians say the meeting kickstarted negotiations toward a potential resolution in the Canada-U.S. trade war, with the goal of lifting or reducing U.S. tariffs.
March 23: Prime Minister Mark Carney calls a federal election, with Trump’s tariffs and their impact on the Canadian economy a dominant campaign issue. Carney says he expects broad negotiations with the U.S. will wait until after a new government is elected on April 28.
March 26: Trump announces 25 per cent tariffs on foreign-made consumer vehicles and auto components, in addition to tariffs already in place on those goods, starting April 2. Vehicles built under North American free trade rules and imported into the U.S. will only face tariffs on non-U.S. components, according to Trump’s executive order.
March 28: Carney and Trump speak for the first time. Both leaders say the call went well, and that comprehensive negotiations on a new trade and security partnership will begin after the Canadian election. Trump appears to soften his rhetoric toward Canada afterward.
April 2: Trump launches his so-called “reciprocal” tariff policy on nearly all foreign trading partners. His executive order imposes a 10 per cent baseline tariff on all countries and territories, with increased tariffs based on half of what the U.S. says certain countries charge if that rate is above 20 per cent.
Canada is excluded from the new tariffs in the short term, but the fentanyl-related tariffs — along with exemptions — remain in place. The White House confirms that, in the event Trump removes the tariffs on Canada and Mexico, they will face a 12 per cent reciprocal tariff on all non-CUSMA-compliant products.
April 3: Trump’s auto tariffs take effect at midnight. Almost immediately, automaker Stellantis announces it is halting production on its Windsor, Ont., manufacturing facility for two weeks, affecting 3,600 jobs. The company also temporarily lays off 900 workers at five U.S. facilities and pauses production at a Mexico facility.
Carney announces Canada will match the U.S. tariffs with its own 25 per cent duties on all non-CUSMA vehicles and non-Canadian auto parts on CUSMA-compliant vehicles, but only those that are imported from the U.S.
April 9: Canada’s counter-tariffs on U.S.-made vehicles and parts take effect at midnight.
Trump announces a three-month pause on all “reciprocal tariffs” higher than 10 per cent to allow for trade negotiations for all countries listed under the policy, except China. Canada and Mexico are not affected by the announcement.
April 28: Carney leads the Liberals to a minority government in the federal election. He says his first priority as prime minister will be to secure a new trade and security partnership with the U.S.
April 29: Trump signs executive orders he says will give some temporary tariff relief to automakers reliant on North American supply chains and give them time to move their business to the U.S.
May 1: The U.S. Commerce Department confirms Canadian auto parts traded under North American free trade rules will be exempted from Trump’s auto tariffs.
May 2: U.S. tariffs on auto parts take effect at midnight, matching the 25 per cent rate set for imported vehicles. General Motors says it is reducing shifts at its Oshawa Assembly plant in Ontario “in light of forecasted demand and the evolving trade environment.”
May 5: Trump threatens to impose a 100 per cent tariff on films not made in the U.S., which he says is necessary to bring production back to Hollywood and other American production hubs.
May 6: Carney meets with Trump at the White House. Both leaders express optimism that the relationship between Canada and the U.S. can be stabilized and agree to future talks.
May 28: The U.S. Court of International Trade blocks Trump’s tariffs on Canada and Mexico as well as his global “reciprocal tariffs,” ruling Trump exceeded his presidential authority. The ruling is overturned on appeal the following day.
May 30: Trump announces he’s doubling his tariffs on steel and aluminum to 50 per cent, effective June 4, saying it’s necessary for national defence to prioritize American products. The Canadian steel industry warns the increase will cause “mass disruption” and decimate the sector.
June 4: The new 50 per cent steel and aluminum tariff rate takes effect. Carney calls the increase “illegal” and vows to respond in ways that protect the Canadian steel and aluminum industry.
June 16: Trump meets with Carney at the G7 Leaders’ Summit in Alberta and says a deal with Canada is “achievable,” while defending his use of tariffs. After the meeting, Carney says the two leaders agreed to negotiate a new deal within 30 days.
June 19: Carney says Canada will “adjust” its existing counter-tariffs on U.S. steel and aluminum on July 21 “to levels consistent with progress that has been made” in broader trade talks with the Trump administration.
June 27: Trump announces he’s terminating trade talks with Canada “effective immediately” due to the impending digital services tax.
June 29: Ottawa says it will rescind its digital services tax in order to restart negotiations. Carney later confirms he and Trump agreed to “recommence” talks “with the view to the July 21 deadline” for a new trade and security deal.
July 7: Trump says a 50 per cent tariff on all copper imported into the U.S. will take effect Aug. 1, and that he’s planning pharmaceutical tariffs as high as 200 per cent.
July 10: Trump releases a letter he sent to Carney saying he’s raising tariffs on Canada to 35 per cent as of Aug. 1. The rate applies to non-CUSMA-compliant goods hit by Trump’s tariffs linked to fentanyl, which Trump says is still “pouring into” the U.S. from Canada. Trump adds he’ll match any further counter-tariffs on top of the 35 per cent rate.
July 30: Trump orders the suspension of a “de minimis” exemption that allowed low-value commercial shipments to be shipped to the United States without facing tariffs, effective Aug. 29.
July 31: Trump signs an executive order raising his tariffs on Canada to 35 per cent starting midnight Aug. 1, after a promised trade deal fails to materialize. Carney says he is “disappointed” by the decision but does not say if Canada will retaliate.
Aug. 6: Trump says he will impose a 100 per cent tariff on computer chips, likely raising the cost of electronics, autos, household appliances and other goods.
Aug. 22: Carney announces Canada will remove all counter-tariffs on U.S. goods compliant with CUSMA, starting Sept. 1, in a bid to both match U.S. tariff policy and revive stalled trade negotiations.
Aug. 29: A U.S. appeals court rules Trump’s fentanyl and reciprocal tariffs illegal, upholding the U.S. Court of International Trade ruling from May and denying Trump’s appeal. The court delays any enforcement to allow the government to appeal to the U.S. Supreme Court.
Sept. 1: Most of Canada’s counter-tariffs on the U.S. are formally removed in line with Carney’s earlier announcement.
Sept. 10: The U.S. Supreme Court says it will hear Trump’s appeal on his emergency-based tariffs, later setting a Nov. 5 date for oral arguments.
Sept. 26-29: In a series of social media posts, Trump says new tariffs will be put on imported pharmaceuticals, heavy trucks, furniture and even movies made outside the U.S.
Sept. 30: Trump signs a proclamation adding a 10 per cent duty on softwood timber and lumber, and a 25 per cent levy on kitchen cabinets and vanities and other upholstered wooden products. The tariffs are scheduled to take effect Oct. 14.
Oct. 7: Carney meets with Trump at the White House for the second time. The leaders agree to “quickly” reach trade deals on steel, aluminum, and energy, with deals on other sectors to follow.
Oct. 14: U.S. tariffs on softwood lumber and imported furniture take effect at midnight.
Oct. 17: Trump orders 25 per cent tariffs on medium and heavy-duty trucks and parts starting Nov. 1, in an expansion of his auto tariffs. The proclamation confirms truck parts imported to the U.S. under CUSMA will remain exempt for now.
Oct. 23: Trump says he’s terminating all trade negotiations with Canada after the Ontario government airs an anti-tariff TV ad in the U.S. that quotes former U.S. president Ronald Reagan. Trump cites a statement from Reagan’s foundation that claims the ad mischaracterized a 1987 speech on tariffs.
Oct. 24: Ontario Premier Doug Ford says he will pull the Reagan ad from American airwaves after speaking with Carney, but will allow it to air during the first two games of the World Series between the Toronto Blue Jays and Los Angeles Dodgers.
Oct. 25: Trump threatens to raise tariffs on Canada another 10 per cent because the ad wasn’t pulled sooner. He says trade talks remain off and that he won’t meet with Carney as planned when the two are in Asia for the Asia-Pacific Economic Cooperation summit.
Oct. 29: Carney and Trump attend a dinner with other world leaders hosted by South Korean President Lee Jae Myung, where the two are seen talking. Carney later tells reporters he and Trump had a “very good” and “pleasant” conversation.
Oct. 31: Trump says Carney apologized to him for the Ontario TV ad during the dinner in South Korea, but says he’s not ready to restart trade negotiations. Carney later confirms he apologized and that airing the ad was “not something I would have done.”
Nov. 5: The U.S. Supreme Court hears the case on Trump’s use of national emergency powers to impose tariffs. Many of the justices appear skeptical with the government’s arguments.
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