The trade relationship between Canada and the United States is constantly evolving, with tariffs shaping the business landscape. As these dynamics shift, we are committed to supporting Bruce County businesses in navigating these challenges and positioning Canada as a premier destination for foreign direct investment (FDI).
To better support your business during this time, we want to hear how the tariffs may be impacting your business and what challenges you may be facing. Fill out this survey, drafted by Western Ontario Wardens’ Caucus Inc. today by clicking below.
General Information on Tariffs
What Are Tariffs?
Tariffs are taxes imposed by governments on imported goods. They are used to:
✔ Protect domestic industries
✔ Generate government revenue
✔ Influence trade policy
Tariffs can lead to higher costs for businesses that rely on imported goods and may affect competitiveness for exporters.
Export Development Canada has developed a comprehensive article – How tariffs work | EDC
All products exported or imported have a Harmonized System (HS) Code, learn how to use them here – What is an HS Code | BDC.ca
How Tariffs Impact Businesses
• Importers: Higher costs due to duties on U.S. goods
• Exporters: Reduced competitiveness in the U.S. market if Canadian goods face tariffs
• Supply Chains: Disruptions due to increased costs and regulatory changes
Canada-U.S. Trade Agreements
Canada and the U.S. are part of the Canada-United States-Mexico Agreement (CUSMA), which allows duty-free trade on many products. However, certain goods may still face tariffs due to trade disputes or industry-specific regulations.
For details, visit Canada’s Trade Agreements.
Latest Update (August 2025)
- Effective August 1st, the United States announced universal 50% tariffs on semi-finished copper products and copper-intensive derivative products.
- Effective August 1, 2025, there will be a 35% tariff on Canadian imports to the US. This will be an increase from the existing rate of 25%.
- Effective July 21, 2025, Canada will revise its existing retaliatory tariffs on US steel and aluminum.
- Effective June 30, Canada has implemented a new procurement rule to reciprocate actions if a country restricts Canadian firms from bidding on its public contracts.
- Effective April 9, Canada imposed a series of retaliatory tariffs, including 25% on non-CUSMA compliant fully assembled vehicles from the United States and 25% on non-Canadian and non-Mexican content of CUSMA-compliant fully assembled vehicles imported from the US.
- Effective March 13, Canada imposed 25% reciprocal tariffs on a list of steel products, aluminum products and other products.
- Effective March 6, the U.S. paused tariffs on Canadian goods compliant with the Canada-United-States-Mexico Agreement (CUSMA).
We continue to monitor developments closely and will provide updates as necessary.
Latest News from the Department of Finance Canada
The Federal Government continues to update its response to Tariffs, updates can be found here: Canada’s response to U.S. tariffs – Canada.ca
The Government of Canada has launched new support measures, including:
- Export Development Canada’s Trade Impact Program: $5 billion in assistance over two years for Exporters.
- BDC Loans: $500 million in favourably priced loans, and advisory services for affected businesses.
- FCC Financing: $1 billion in new financing through Farm Credit Canada.
- Work-Sharing Program – Overview – Canada.ca: This program has been broadened to support the Tariff Impact.
- Temporary Employment Insurance Measures: Support workers and improve access to EI benefits in response to major changes in economic conditions.
- Duty Drawback Program: Helps Canadian companies compete in export markets by removing the domestic duty impact from commercial goods.
- Supports for Business: Find hundred of available programs and services quickly and easily.
What is Bruce County doing about this?
• New marketing focused on supporting local businesses during this time.
• Free Business advisory services through Business to Bruce
• Tourism marketing targeted towards Canadian’s changing their travel plans to consider Bruce County as a destination.
• Providing information and education related to the impact of tariffs on local businesses.
• Collecting your concerns and understanding direct impacts through the Bruce County Tariff Survey.
• Sharing general learnings and information with organizations involved in advocacy including the Wester Ontario Warden’s Caucus
To learn more or connect directly with Bruce County Economic Development Staff please email us at info@businesstobruce.com
Other Support for Businesses
Finding New Markets
- Canadian Commercial Corporation (CCC): Support to pursue sales to foreign governments at all levels and provides a government-to-government contracting mechanism that de-risks the transaction for both you and your buyer.
- U.S. market intelligence | EDC
- Diversify your exports with the Trade Commissioner Service
- Expand your business into new markets: Support for new market entry, reducing risk, trade data and inclusive trade.
Funding to Support Expansion
- Small business loan: Apply online for up to $100,000
- Helping small businesses get loans
- Pivot to grow loan | BDC.ca
Existing Support Programs
- Risk Management Program – Designed to help agriculture producers manager risk beyond their control like fluctuating costs and market prices.
I Am Directly Buying U.S. Products
If you purchase goods directly from the U.S., here’s what you need to consider:
Import Duties and Tariffs
• Only certain U.S. goods are subject to Canadian tariffs.
• Canada Tariff Finder can help determine specific rates.
• List of products from the United States subject to 25 per cent tariffs effective March 4, 2025 – Canada.ca
• List of products from the United States subject to 25 per cent tariffs effective March 13, 2025 – Canada.ca
• Additional Tariffs, while not in effect, are being consulted on. Check that list and provide feedback here (Current Status: closed).
• Goods may qualify for duty-free treatment under CUSMA.
Industry-Specific Tariffs
• Certain industries, such as steel, aluminum, dairy, and agriculture, face additional tariffs.
• A list of U.S. products subject to Canadian tariffs effective March 4, 2025, is available through the Department of Finance.
Mitigation Strategies
• Ensure proper documentation for CUSMA benefits.
• Consider alternative suppliers in non-tariff regions.
• Explore the remission process for certain tariffs (details here and process outlined here).
I Am Sending Product to the U.S.
If you export to the U.S., tariffs and regulations may affect your pricing and competitiveness. Here’s what you need to consider:
U.S. Import Tariffs on Canadian Goods
• Following a further announcement CUSMA compliant goods will have a 0% tariff, non CUSMA goods will see a 25% tariff and non-CUSMA compliant energy and potash will see a 10% tariff.
• The U.S. applies tariffs on steel, aluminum, lumber, agriculture, and automotive parts.
• Check the U.S. Harmonized Tariff Schedule for applicable rates.
Regulatory Compliance
• Customs Documentation: Ensure accurate paperwork, including CUSMA certificates.
• Product Standards: U.S. regulations may require specific labeling, health, or safety standards.
Potential Trade Disruptions
• The U.S. may impose new tariffs based on trade negotiations.
• Stay informed through Global Affairs Canada.
Strategies to Reduce Costs & Risks
• Utilize tariff exemptions under trade agreements.
• Partner with U.S. distributors to streamline compliance.
• Consider looking for alternative export opportunities, learn more about Exporting from Canada
• Consider Foreign Trade Zones (FTZs) where goods can be stored without immediate tariffs.
Resources and Support
Government of Canada
Trade and Export Support
- Global Affairs Canada – Tariff information, sanctions, export/import controls.
- Trade Commissioner Service – Assistance with funding, international trade opportunities.
- Trade Tracker – Real-time trade flow insights.
Business and Funding Support
- Export Development Canada – Trade knowledge, financing, and insurance.
- BDC Support for Businesses Impacted by U.S. Tariffs
- Canadian Manufacturers & Exporters – Industry advocacy and support.
- Canadian Federation of Independent Businesses – Advocacy for small businesses.
- Start Up Canada – Tariff Toolkit – Information and events.
- Apply for the Duties Relief Program – Import goods without paying duties if they are re-exported.
Shop and Support Local
- Ontario Made Directory and Canada Made Directory – Find Canadian-made products.
- “Made in Canada” and “Product of Canada” aren’t interchangeable – Outing the difference
For questions and inquiries, please email us at info@businesstobruce.com.