CANADA NEWS RELEASE: Canada Announces Robust Tariff Package in Response to Unjustified U.S. Tariffs

Canada Announces Robust Tariff Package in Response to Unjustified U.S. Tariffs

March 4, 2025

Department of Finance Canada

Minister LeBlanc also announced that, should the U.S. continue to apply unjustified tariffs on Canada, the government intends to impose additional countermeasures on $125 billion in imports from the U.S., drawing from a list of goods open for a 21-day comment period, which would bring the scope of countermeasures to a total of $155 billion worth of products. The list includes products such as electric vehicles, fruits and vegetables, beef, pork, dairy, electronics, steel, aluminum, trucks, and buses.

The government is also taking steps to mitigate the impact of these countermeasures on Canadian workers and businesses by establishing a remission process to consider requests for exceptional relief from the tariffs imposed as part of our response to the U.S. applying unjustified tariffs on Canada.

All options remain on the table as the government considers additional measures, including non-tariff options, should the U.S. continue to apply unjustified tariffs on Canada.

The U.S. administration’s decision to impose tariffs on Canada will have devastating consequences for the American economy and people. As a result of the tariffs imposed by the U.S., Americans will pay more at grocery stores and gas pumps, and potentially lose thousands of jobs. U.S. tariffs will also disrupt an incredibly successful trading relationship and violate the Canada-U.S.- Mexico (CUSMA) trade agreement that was renegotiated by President Trump in his last term.

Less than 1 per cent of fentanyl and illegal crossings into the United States come from Canada, yet the government launched a $1.3 billion border plan with new choppers, boots on the ground, more coordination, and increased resources to stop the flow of fentanyl. This includes Canada’s newly appointed Fentanyl Czar; a Canada-United States Joint Strike Force; an intelligence directive on organized crime and fentanyl, backed up by $200 million to increase law enforcement’s information sharing capacity; the listing of seven transnational criminal organizations largely responsible for fentanyl pouring into our communities; and the launch of a new intelligence partnership made up of key players from Canada’s big banks and law enforcement. The Government of Canada is making  a strong border even stronger, and because of our work, the U.S. Customs and Border Protection has reported a significant decrease in fentanyl seizures from Canada, with a 97 per cent drop in January 2025 compared to December 2024.

The tariffs imposed by the U.S. administration are unjustified, and detrimental to both Americans and Canadians. Working with provincial, territorial and industry partners, our singular focus is to get them removed as quickly as possible. While we urge the U.S. administration to reconsider their decision to impose tariffs, Canada will remain firm in standing up for our jobs, our industries, and our workers.

Quick facts

• Canada is the top customer for U.S. goods and services exports and a critical supplier of goods and services integral to the U.S. economy, with Canada buying more U.S. goods than China, Japan, France and the United Kingdom combined.
• Millions of jobs on both sides of the border depend on this relationship, and every day over US$2.5 billion worth of goods and services crosses the border.
• Canada is the largest export market for 36 states and is among the top three for 46 states, with 43 states exporting over US$1 billion to Canada every year.
• Of the U.S.’s top five trading partners, Canada is the only country with whom the U.S. has a trade surplus in manufacturing (US$33 billion in 2023).
• The tariffs announced today by the Government of Canada will not apply to U.S. goods that are in transit to Canada on the day on which these countermeasures come into force.
• On December 17, 2024, the Government of Canada announced Canada’s Border Plan, which aims to bolster border security, strengthen our immigration system, and keep Canadians safe.
• The Plan is backed by an investment of $1.3 billion and built around five pillars: 1) Detecting and disrupting fentanyl trade; 2) Introducing significant new tools for law enforcement; 3) Enhancing operational coordination; 4) Increasing information sharing; and 5) Minimizing unnecessary border volumes.
• On February 11, 2025, the Government of Canada announced the appointment of Kevin Brosseau as Canada’s new Fentanyl Czar. Mr. Brosseau works closely with U.S. counterparts and law enforcement agencies to accelerate Canada’s ongoing work to detect, disrupt, and dismantle the fentanyl trade.
• According to U.S. Customs and Border Protection, less than 1 per cent of the fentanyl and illegal crossings into the United States come from Canada.
• On February 20, 2025, the Government of Canada announced the listing of seven transnational criminal organizations, including cartels, as terrorist entities.
• As a first line of defence, Canada’s robust system of economic support programs is available to help businesses and workers directly impacted by U.S. tariffs. This includes financing and advisory supports for businesses through financial Crown corporations and supports for workers through the Employment Insurance program. As the government redoubles its efforts to improve Canada’s investment, productivity and competitiveness in collaboration with provinces, territories and the business community, it will proactively monitor impacts across sectors and the economy, and will bring forward additional measures to support workers and businesses as needed. The government continues to work closely with provincial and territorial governments, as well as business, labour, and other leaders to advance a robust Team Canada response, and to advocate with U.S. decision-makers on behalf of all Canadians to safeguard and strengthen Canada’s economy.

Additional Resources

• • • List of products from the United States subject to 25 per cent tariffs effective March 4, 2025
    • Process for requesting remission of tariffs that apply on certain goods from the U.S.
    • Notice of Intent to Impose Countermeasures in Response to United States Tariffs on Canadian Goods
    • Customs Notice 25-10: United States Surtax Order (2025-1)

Media Contacts

Gabriel Brunet
Press Secretary
Office of the Minister of Finance and Intergovernmental Affairs
Gabriel.Brunet@iga-aig.gc.ca
819-665-6527

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000