# Canada-US Tariff Response 2025
> [!metadata]- Metadata
> **Published:** [[2025-02-03|Feb 03, 2025]]
> **Tags:** #🌐 #canada #economics #international-relations
Effective February 4, 2025, Canada is imposing 25% tariffs on $30 billion worth of goods imported from the United States. These countermeasures will remain in place until the U.S. eliminates its tariffs against Canada. The tariffs only apply to U.S. goods eligible to be marked as goods of the U.S.
> [!important] Important Notes
> - These countermeasures are effective immediately from February 4, 2025
> - U.S. goods in transit to Canada on implementation date are exempt
> - The list of products should be read with Canada's Customs Tariff Schedule
> - Additional details on administration available on CBSA website under Customs Notices
# Historical Context
Before examining the current situation, it's important to understand that tariffs have historically been complex economic tools with mixed results. While they can protect domestic industries, they often lead to increased consumer costs and potential job losses in other sectors. The United States itself has a long history with tariffs, from using them to build its industrial base in the 19th century to more recent applications in specific sectors like automotive and steel.
# Impact on Canadian Consumers
The implementation of these countermeasures will likely result in:
1. Higher prices for US-imported goods
2. Potential price increases in domestic products as Canadian manufacturers adjust their pricing
3. Possible supply chain disruptions as businesses adapt to new trade conditions
# Economic Implications
## For Canada
- Protection for domestic industries directly competing with US imports
- Potential job creation in some sectors, but possible job losses in others
- Risk of reduced trade volume affecting both economies
- Additional government revenue from tariff collection
## For Bilateral Relations
- Strain on the Canada-US trading relationship
- Potential impact on CUSMA/USMCA effectiveness
- Risk of escalating trade tensions
# Products Subject to 25% Tariff
The first phase of Canada's response targets $30 billion worth of US goods. Key categories include:
## 1. Food & Agricultural Products
- All poultry products and eggs
- Milk, cream, yogurt, cheese, and other dairy products
- Natural honey
- Fresh fruits including citrus, melons, apricots, cherries, peaches
- Coffee and tea
- Spices including pepper, vanilla, cinnamon, nutmeg
- Wheat, rye, barley, oats, rice
- Vegetable oils and margarine
- Prepared foods and sauces
## 2. Beverages & Tobacco
- Water and beer
- Wine and vermouth
- Other fermented beverages
- Unmanufactured tobacco
- Cigars, cigarettes, and vaping products
## 3. Personal Care & Cosmetics
- Perfumes and toiletries
- Makeup and skincare products
- Oral hygiene products
- Shaving products, deodorants
## 4. Home & Living
- Floor coverings and plastics
- Bathroom fixtures
- Furniture and bedding
- Kitchen appliances
- Vacuum cleaners
- Lighting fixtures
## 5. Clothing & Accessories
- All types of clothing and apparel
- Footwear
- Bags and leather goods
- Jewelry and imitation jewelry
## 6. Tools & Equipment
- Hand tools and power tools
- Farm machinery
- Locks and security equipment
- Air pumps and compressors
## 7. Recreation & Sports
- Video game consoles
- Casino games
- Motorcycles
- Unmanned aircraft
- Firearms and ammunition
# Looking Forward
While tariffs can serve as negotiating tools, history shows they often become permanent fixtures of trade policy, lasting decades beyond their intended purpose. The challenge for both nations will be finding a balance between protecting domestic interests and maintaining the benefits of free trade that have characterized the Canada-US relationship.
> [!info] Sources
> **Official Documents:**
> - [Department of Finance Canada Announcement](https://www.canada.ca/en/department-finance/news/2025/02/list-of-products-from-the-united-states-subject-to-25-per-cent-tariffs-effective-february-4-2025.html)
> - [Global News - Full List of Targeted Items](https://globalnews.ca/news/10993895/canada-counter-tariffs-full-list/)
>
> **Further Analysis:**
> - [Why Economists Hate Trump's Tariff Plan](https://youtu.be/_-eHOSq3oqI) - Wall Street Journal
> - [Can Tariffs Actually Work?](https://youtu.be/K0V8kZyl1T0) - Economics Explained
> - [There is no justification whatsoever for these tariffs](https://youtu.be/z3dLTmQ4s5Q) - Political Response