On Thursday, July 31, 2025, the U.S. government announced a new round of trade tariffs on Canada, increasing import taxes from 25% to 35%. According to U.S. officials, this move is meant to protect American industries from what they describe as “unfair trade practices” and is a response to Canada’s “retaliation and lack of action” on previous trade disputes.
Countries Affected by the New U.S. Trade Tariffs
While Canada faces the highest increase, several other countries are impacted as well:
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Switzerland: 39%
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South Africa: 30%
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Vietnam: 20%
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Bangladesh: 20%
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Pakistan: 19%
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Lesotho: 15%
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Venezuela: 15%
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Turkey: 15%
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Israel: 15%
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Cameroon: 15%
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Chad: 15%
Countries that did not reach a trade deal by August 1 will remain at a 10% tariff rate.
Impact on Canadian Exports
Trade between Canada and the U.S. is significant, with Canadian exports to the U.S. totaling over $450 billion in 2024. A higher U.S. trade tariff on Canada means:
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Canadian goods may become more expensive in the U.S. market
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Export companies risk losing revenue as buyers seek cheaper alternatives
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Jobs in manufacturing, forestry, and agriculture could be at risk
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Consumers in Canada might see price increases on imported goods
Sectors That Could Be Most Affected
Automotive Industry: Canada exports hundreds of thousands of vehicles and auto parts to the U.S. annually. Even a small tariff increase can reduce competitiveness.
Agriculture: Products like beef, pork, and grains may face lower demand in the U.S.
Forestry: Lumber trade tensions could worsen, affecting one of Canada’s most high-profile export sectors.
Manufacturing: Machinery, processed foods, and other goods may see a decline in U.S. orders.
What Canadian Businesses Should Do
If your business exports to the U.S., consider taking these steps:
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Review supply chains and contracts
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Explore alternative markets outside the U.S.
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Monitor currency exchange rates as trade tensions may impact the Canadian dollar
Final Thoughts
The new U.S. trade tariffs on Canada are more than just numbers—they have real consequences for businesses, workers, and prices on both sides of the border. Whether this is a temporary tactic or the start of a longer-term shift in Canada-U.S. trade relations remains to be seen.
Stay tuned to Oh Canada Finds for the latest updates on this developing story.