Trump pushed tariffs on Canada to 35 per cent, but a CUSMA carveout creates a shield
CANADA, AUG 1 – The tariffs exclude products under the Canada-U.S.-Mexico trade agreement, covering 94% of Canadian imports to the U.S., according to RBC Economics analysis.
- On August 1, 2025, U.S. President Donald Trump signed an executive order imposing 35% tariffs on many Canadian goods, effective the following Friday.
- Trump justified the tariffs by citing Canada’s failure to curb fentanyl flow, retaliatory tariffs, dairy supply management, and Canada’s recognition of Palestinian statehood.
- Most Canadian exports compliant with the Canada-U.S.-Mexico Agreement could avoid these tariffs, but trade uncertainty is causing investment chill and worries among small businesses.
- Prime Minister Mark Carney expressed disappointment yet emphasized ongoing efforts to protect jobs and combat illicit drugs, while Candace Laing called the White House fact sheet "fact-less."
- The tariffs increased economic tensions and delayed business certainty, prompting calls for negotiation, support of impacted businesses, and diversification of Canadian trade partnerships.
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CHARLEBOIS: CUSMA-Exempt — the 93% Mirage
Since Aug. 1, many Canadian commentators have downplayed the impact of the 35% tariffs the United States has imposed on select Canadian goods, citing the Canada–United States–Mexico Agreement (CUSMA) and its oft-repeated claim that 90% to 93% of Canadian exports remain exempt.

Canadian tariffs have increased to 35%. How will Maine be affected?
A pact between the U.S., Canada and Mexico exempts the vast majority of imports from the new tax. But the changes will still hurt Maine's people and businesses, according to the state chamber of commerce.
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