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ARTICLE · 07 FEBRUARY 2025

US Hits Canada With Sweeping Tariffs And Canada Retaliates – First Shots Fired In New Continental Trade War

Dentons Canada LLP
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On the afternoon of Saturday, February 1, 2025, the Trump Administration imposed sweeping tariffs on virtually all Canadian goods imported into the US. Later that evening, Canadian Prime Minister, Justin Trudeau...

CanadaInternational Law
Paul Lalonde
Paul Lalonde
Sean Stephenson
Sean Stephenson
Michael E. Zolandz
Michael E. Zolandz
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On the afternoon of Saturday, February 1, 2025, the Trump Administration imposed sweeping tariffs on virtually all Canadian goods imported into the US. Later that evening, Canadian Prime Minister, Justin Trudeau, announced counter-tariffs on US goods imported into Canada. The tariffs on both sides of the border are to take effect Tuesday, February 4 (with some Canadian tariffs coming into force 21 days later).

US Measures

Pursuant to the Presidential emergency powers under the International Emergency Economic Powers Act (the "IEEPA"), the US President implemented a 25% additional1 tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Energy resources from Canada will have a lower 10% tariff. "Energy" or "energy resources" means crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals. The

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Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com

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