- Removal of Tariffs on US Goods: Effective September 1, 2025, Canada will eliminate retaliatory tariffs on a wide range of US goods covered under the Canada-US-Mexico Agreement (CUSMA), affecting CA$30.3 billion in annual imports. However, tariffs on steel, aluminum, and motor vehicles from the US will remain in place, with specific exemptions for certain items.
- Support for Affected Sectors: On September 5, 2025, Prime Minister Mark Carney announced new measures to support Canadian businesses and workers impacted by US tariffs. This includes a CA$5 billion Strategic Response Fund for key sectors, a “Buy Canadian Policy” to prioritize local suppliers, and increased financial assistance for small and medium-sized enterprises (SMEs).
- Implications for Taxpayers and Businesses: Taxpayers should prepare for changes in import costs due to the tariff adjustments, and they are encouraged to explore the new support measures to mitigate impacts on affected industries, particularly in agriculture and manufacturing.
Source EY
Latest Posts in "Canada"
- Importer of Record to Share Joint Liability for Customs Duties and Taxes Starting January 2026
- Canadian House of Commons Considers Bill C-15 on Tax Measures and GST/HST Coupon Restrictions
- Canada Scraps Digital Services Tax in Budget Implementation Bill
- Canada’s 2025 Budget Introduces Reverse Charge to Combat GST Carousel Fraud in Telecom Sector
- Canada’s 2025 Budget Introduces GST/HST Reverse Charge to Combat Supply Chain Carousel Fraud
