Update on United States tariffs and Canadian countermeasures

As outlined in our previous communication, the rapidly evolving situation surrounding United States tariffs this week has been challenging, particularly given the shifting statements from American officials.

However, AIA Canada was invited to a formal briefing with the Department of Finance this morning, where we received an official update on Canada’s response.

On March 6, 2025, President Trump announced a temporary pause on the broad economic tariffs of 25 per cent until April 2, 2025. This pause does not apply to steel and aluminum, which are still set to be implemented on March 12, 2025.

Canada’s initial list of $30 billion countermeasures, which involve the inclusion of aftermarket tires, will remain in place.

This is because Canadian exports must adhere to Canada-United States-Mexico Agreement’s (CUSMA) rule of origin to qualify for the exemption from tariffs until April 2, 2025. However, goods that do not meet the rule of origin will be subject to a 25 per cent tariff.

Prime Minister Trudeau has confirmed that Canada will continue with retaliatory tariffs until all United States tariffs are removed.

The government has strongly encouraged stakeholders to consult with customs brokers, lawyers, and accountants to navigate the compliance process.

Additionally, the second list of proposed tariffs—amounting to $125 billion and scheduled for March 25—has been paused.

Should you have any questions or require further clarification, please feel free to reach out to AIA Canada’s Vice President of Government Relations, Emily Holtby, at emily.holtby@aiacanada.com.