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'The Year that the Shoe Dropped': How the Canada-U.S. Relationship Changed in 2025

On Dec. 26, 2025, the Canada‑U.S. trade relationship was described as effectively over after U.S. tariffs began hitting Canada in March, according to observers.
Trump escalated tariffs with threats and provocative rhetoric, including talk of tariffs and a failed Mar‑a‑Lago visit, before April 'reciprocal' tariffs and August rate hikes to 35 per cent.
Ottawa responded by suspending its digital sales tax and tightening borders, with talks collapsing in October after an Ontario‑sponsored TV ad prompted the White House to end negotiations, the past year described as a 'partial revolution' by a university professor.
Section 232 measures targeted key Canadian industries including steel, aluminum, automobiles, copper and lumber, causing many Canadians to feel an existential crisis, while the impact inside the United States was less evident.
Deadlines for a deal have repeatedly passed with no clear progress, media reports of a mid-October framework failed to materialize, and Fen Osler Hampson said a swift breakthrough is unlikely.

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‘The year that the shoe dropped’: How the Canada-U.S. relationship changed in 2025

The people anxiously sipping hot chocolate in the Canadian Embassy in Washington on a cold night in January almost a year ago couldn’t have predicted the roller-coaster of trade provocations and bilateral blow-ups the next 12 months would bring.

19 hours ago·Canada

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