Earlier this week, President Donald Trump of the United States declared his plan to impose 50% tariffs on certain Canadian products, such as alcohol and dairy, intensifying the trade dispute between the two countries. The tariffs are set to become effective on August 19. This action is a response to Canada’s imposition of retaliatory tariffs on the U.S. in reaction to previous tariffs imposed by Trump. The ongoing series of tariffs initiated by Trump since taking office can be complex to follow. Here is a brief chronological overview of how Trump’s trade actions have unfolded in Canada:
On February 1, 2025, Trump signed an executive order imposing tariffs on Canadian exports to the U.S. The order, aimed at addressing the flow of illicit drugs across the border, levied tariffs at different rates, with certain products exempted. The tariffs were scheduled to take effect on March 4.
Just two days after the initial tariffs, Trump amended the executive order to provide exemptions for products complying with the terms of the Canada-U.S.-Mexico Agreement (CUSMA). This exemption covered nearly 90% of Canadian exports to the U.S., allowing most products to enter tariff-free.
In April 2025, after threats of imposing tariffs on automobiles and auto parts, Trump modified the levy to apply only to non-CUSMA compliant parts and non-U.S. portions of assembled vehicles. Despite the adjustments, the tariffs affected Canada’s auto sector and impacted North American automakers’ profits.
In May 2025, Prime Minister Mark Carney, after leading his party to a minority election victory, met with Trump at the White House to discuss the tariffs issue. Although Carney advocated for tariff removal, Trump did not indicate a change in his stance.
In June 2025, Trump doubled the tariff on steel and aluminum imports from all countries to 50%. Canada, being a major supplier of these products, faced the impact of this decision.
In July 2025, Trump threatened to raise the tariff on Canadian goods to 35%, linking the adjustment to cooperation on curbing the flow of Fentanyl. This move was set to take effect on August 1.
On July 11, 2025, it was clarified that CUSMA-compliant goods would remain exempt from the tariffs, even with the proposed rate increase on August 1.
On July 30, 2025, as the deadline approached, Carney signaled that Canada might not reach a deal in time. Shortly after, Trump criticized Canada’s stance on recognizing Palestine, potentially complicating trade negotiations.
On July 31, 2025, Trump signed an executive order increasing tariffs on Canadian goods from 25% to 35%, following through on his threat due to the absence of a trade agreement with Canada.
In August 2025, higher tariffs, including 50% on copper imports, were implemented. Additionally, countervailing duties on Canadian softwood lumber were more than doubled by the U.S. Department of Commerce.
In September 2025, Trump announced new tariffs on various products, including pharmaceutical drugs and kitchen cabinets, starting on October 1. The tariffs also included an additional 10% tariff on softwood timber and lumber imports.
In October 2025, an Ontario premier’s anti-tariff advertisement led to tensions with Trump, impacting trade talks with Canada.
In February 2026, the U.S. Supreme Court ruled against Trump’s use of the International Emergency Economic Powers Act for tariffs on Canada, Mexico, and China.
On July 1, 2026, the United States indicated its unwillingness to renew the CUSMA trade pact in its current form, signaling potential changes in the agreement.
On July 20, 2026, Trump announced a new round of 50% tariffs on specific Canadian goods, without exceptions for CUSMA-compliant products.
On July 21, 2026, Canadian premiers agreed to introduce direct-to-consumer sales of alcohol across provinces in response to the ongoing trade tensions with the U.S.
This overview highlights the key events in the escalating trade dispute between the U.S. and Canada, reflecting the evolving nature of the trade relationship between the two nations.