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ARTICLE · 18 FEBRUARY 2025

Tariff Roller Coaster: Canada And The U.S. Brace For A Wild Ride

Miller Thomson
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As most know, President Donald J Trump issued three executive orders on February 1st, imposing...

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Barry Horne
Barry Horne
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Introduction

As most know, President Donald J Trump issued three executive orders on February 1st, imposing:

  • A 25% tariff on Mexico and Canada (reduced to 10% for Canadian oil).
  • A 10% tariff on China.

Canada responded with a 25% tariff on CAD 155 billion worth of U.S. imports. At the time they were announced, it was said that the tariffs would be phased in, starting with CAD 30 million on February 4th, with the balance coming into effect within 21 days after public consultation.

Mexico also threatened a 25% retaliatory tariff on U.S. goods, though the specifics at that time were unclear.

On February 3rd, Canada and Mexico each successfully negotiated a 30-day pause on tariff implementation. China, however, responded on February 4th with retaliatory 10% tariffs effective February 10th, alongside other non-tariff measures.

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