After weeks of uncertainty, the new tariffs have finally arrived, leaving many North American businesses to deal with significant challenges. Effective Tuesday, March 4, 2025, Canadian imports into the United States will be subject to an additional 25% tariff, except for Canadian energy products, which will be subject to a 10% tariff. Energy products include “critical minerals,” such as aluminum, uranium and other minerals listed by the U.S. Department of Energy.
The Canadian government is imposing retaliatory tariffs on certain U.S. goods in two phases, with Phase 1 commencing Tuesday, March 4, 2025 (excluding goods in transit to Canada on March 4, 2025). Phase 1 Canadian tariffs target select U.S.-originating products, including orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. The complete list, which remains unchanged from February 2025, is available here.
Phase 2 tariffs will be broader, following a 21-day consultation period, which is expected to commence March 4, 2025. The Phase 2 list of U.S. goods subject to tariffs will be drawn from the list of goods available here. The government is seeking views from businesses, stakeholders and Canadians regarding the impacts of the application of tariffs to the list of potential Phase 2 goods until March 25, 2025.
Canadian and U.S. businesses should ensure that their customs brokers are instructed to apply the correct tariff codes for importations into the U.S. and Canada. Any changes in pricing or other contemplated changes in response to the tariffs should be reviewed against existing contractual obligations. With a deep understanding of trade laws and a proven track record, our legal team is well-equipped to help businesses protect their interests and effectively manage legal issues and disputes that may arise from the tariffs.
Our team is closely monitoring developments, and we will provide updates when more details are made available by Canada and the U.S.
For further details, please contact the authors or any other member of our International Trade group.
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