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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65 Articles
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.
B.C.'s Jobs Minister Kahlon urges Canada to 'negotiate hard' over U.S. tariff raises
VICTORIA — British Columbia's minister of jobs and economic growth is urging the federal government to stand firm and "negotiate hard" when trying to find a solution to 35 per cent tariffs imposed by U.S.
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