Canada Imposes 25% Tariffs on $30 Billion in U.S. Goods, Including Food

In response to the United States imposing a 25% tariff on all products imported from Mexico and Canada, the Government of Canada announced on March 4, 2025, a retaliatory measure: a 25% tariff on $30 billion worth of U.S. goods. This move is part of a broader strategy that could expand to $155 billion in goods if the U.S. maintains or escalates its tariffs.

The Canadian government has framed these countermeasures as essential to protecting its economy and jobs, emphasizing the impact on key industries such as agriculture and manufacturing.

• The tariffs apply to goods marked as originating from the U.S. under the CUSMA (Canada-United States-Mexico Agreement) Country of Origin Regulations.
• Exemptions include U.S. goods already in transit to Canada before the tariffs take effect.
• The tariffs will remain in place until the U.S. removes its tariffs on Canadian products.

Products Affected:

The 25% tariff covers a wide range of food and agricultural products, including:

• Meats (beef, pork, poultry)
• Dairy products (milk, cheese, butter)
• Vegetables and fruits (fresh and processed)
• Nuts, coffee, and spices
• Grain products (wheat, barley)
• Fats and oils
• Sugars and chocolate
• Pasta and ice cream
• Beverages (water, wine, alcohol)

Assessment & Impact

The tariffs will significantly impact agriculture and manufacturing, raising costs for businesses and consumers. Supply chain disruptions are expected, particularly in food production, where Canadian companies rely on U.S. ingredients that are not easily sourced elsewhere.

Industry groups have raised concerns about higher consumer prices and escalating trade tensions. Businesses must prepare for potential cost increases and changes in sourcing strategies.

What’s Next?

Businesses should review their product lines to identify goods affected by the new tariffs and assess the financial impact. Companies may need to explore alternative suppliers or adjust pricing strategies. It is also important to stay informed on trade negotiations between Canada and the U.S., as further changes may occur.

The situation is evolving, and businesses should monitor updates to adapt accordingly.