As a non-economist, I have found the constant on-again off-again tariff battles of the last seven months to be very confusing.
But it seems like Trump's so-called tariff strategy has finally reached deadline velocity, and his tariffs are finally all happening. Mostly.
The Toronto Star is tracking what’s active, what’s coming and how Canada has responded
The Toronto Star is tracking what’s active, what’s coming and how Canada has responded
It’s a complex, tangled picture. Here’s a look at what tariffs are currently in place and why, what more is being threatened, and how Canada has reacted to the trade war so far:It still makes my brain hurt to try to understand this.
Active U.S. tariffs against Canada
• 50 per cent tariff on steel and aluminum imports into the U.S., because of an alleged threat to American security. This tariff originally came in at 25 per cent on March 12, but Trump increased it to 50 per cent on June 4.
• 25 per cent tariff on auto parts imported into the U.S. kicked in May 3, except for those that comply with the 2018 Canada-United States-Mexico Agreement (CUSMA), the current North American free trade deal. Trump also imposed a 25 per cent tariff on all cars and light trucks not made in the U.S., including from Canada, which took effect April 3. Trump justified the tariffs again for national security reasons.
• 35 per cent tariff on Canadian goods that don’t comply with CUSMA, and a 10 per cent tariff on energy products from Canada, which was first announced in February and came into effect March 4 at a lower 25 per cent rate on goods. On Aug. 1 the U.S. hiked goods tariffs to 35 per cent. Trump has tied these so-called border tariffs to claims of a national emergency over fentanyl and migrants crossing the U.S. border illegally from Canada. On March 7, Canada won an exemption to these tariffs for all goods that comply with CUSMA. RBC Economics estimated in an April report that, because of this exemption, about 86 per cent of Canadian exports could still cross the border without tariffs.
• 20.56 per cent tariffs on Canadian softwood lumber, over alleged “dumping” of cheaper products into the U.S. market. The Trump administration increased the tariff in late July from 7.66 per cent.
• 50 per cent tariff on some copper imports as of Aug. 1.
Retaliatory Canadian tariffs
• 25 per cent tariffs on $29.8 billion worth of steel and aluminum products from the U.S., implemented March 13 in response to Trump’s tariffs on the same goods from Canada.
• 25 per cent tariff on fully assembled vehicles that don’t comply with CUSMA since they are made with less than 75 per cent North American content. This counter-tariff took effect April 9. Components of compliant cars that aren’t made in Canada or Mexico are subject to the 25 per cent tariff. The tariff targets about $35 billion worth of American vehicles brought into Canada.
Other Canadian actions
• Canada abandoned its long-planned Digital Services Tax on June 29, after Trump said he would walk away from trade talks over the tax that would hit American online giants.
• Canada removed its 25 per cent retaliatory tariffs on American goods that comply with CUSMA, effective Sept. 1. The measure was initially implemented March 4 in response to Trump’s border tariffs.
Threatened U.S. tariffs
• Trump has threatened a “very high” tariff on pharmaceutical imports, possibly as high as 200 per cent.
• The U.S. is considering tariffs on semiconductors and critical minerals as part of national security reviews.
