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 (March 2025)
•On March 13, Canada imposed 25% reciprocal tariffs on a list of steel products, aluminum products and other products.
• Effective March 6, the U.S. announced an exemption on Canadian goods compliant with the Canada-United-States-Mexico Agreement (CUSMA) until April 2.
• Canada’s initial retaliatory tariffs remain in place, while the second wave of retaliatory tariffs has been suspended until further notice.
• A 25% tariff on Canadian steel and aluminum exports to the U.S. is scheduled to take effect on March 12.
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.
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
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 – Notice of Intent to Impose Countermeasures in Response to United States Tariffs on Canadian Goods – Canada.ca
• 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).
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
• 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 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.