Supporting Our Business Community

U.S.–Canada Tariffs: What BWG Businesses Need to Know
Last updated: August 18, 2025

Summary of What’s In Effect

• CUSMA exemption: Since March 7, 2025, goods that qualify for CUSMA/USMCA preferential treatment are exempt from the new U.S. tariffs. U.S. Customs and Border Protection
• General goods: Non-CUSMA-compliant Canadian exports to the U.S. face an additional tariff (25% in March; increased to 35% effective August 1, 2025). Trade Commissioner Service
• Energy & potash: Non-CUSMA-compliant energy and potash exports face a 10% U.S. tariff. U.S. Customs and Border Protection
• Steel & aluminum: The U.S. imposed a 25% tariff on Canadian steel and aluminum as of March 12, 2025. Government of Canada
• Automobiles and parts: The U.S. imposed a 25% tariff on Canadian autos/parts; Canada responded with targeted countermeasures starting April 9, 2025. The White House
• Canada’s countermeasures: Canada applied retaliatory tariffs beginning March 4, 2025 (initial CA$30B list), added a March 13 steel/aluminum list, and auto-related measures from April 9; a time-limited remission framework provides targeted relief on certain inputs through mid-October. Government of Canada

What this Means for BWG Businesses

1. Confirm CUSMA compliance to avoid the new U.S. tariffs where possible. Get (and retain) proper origin documentation and supplier affidavits. Trade Commissioner Service Canada Border Services Agency
2. Classify products correctly (HS codes) and check tariff exposure using the tools linked below. Global Affairs Canada
3. Consider CBSA programs to defer or recover duties on re-exports (Duties Relief and Duty Drawback). Canada Border Services Agency
4. Review federal and Ontario relief/financing programs (EDC, BDC, FedDev, Ontario programs) and apply where eligible. Export Development Canada
5. Talk to your customs broker and legal counsel about contract clauses, surcharge language, and routing changes.

BWG Tariff Advocacy & Feedback

• We continue active engagement with federal, provincial, and local partners to raise BWG business concerns and seek practical relief.

• Share your input: BWG survey on tariff impacts (2–3 minutes): https://forms.office.com/r/FnQL8Ra5Xn

• Contact BWG Economic Development: ecdev@townofbwg.com

Federal Relief, Programs & Tools

• Canada’s response to U.S. tariffs (overview, lists, remission, supports): https://www.canada.ca/en/department-finance/programs/international-trade-finance-policy/canadas-response-us-tariffs.html

• Complete list of U.S. products subject to Canadian counter-tariffs (searchable): https://www.canada.ca/en/department-finance/programs/international-trade-finance-policy/canadas-response-us-tariffs/complete-list-us-products-subject-to-counter-tariffs.html

• CUSMA compliance (Trade Commissioner Service guidance, hotline): https://www.tradecommissioner.gc.ca/en/market-industry-info/search-country-region/country/canada-united-states-export/us-tariffs/supporting-exporters-through-tariff-challenges.html

• CBP statement confirming CUSMA-compliant goods are exempt from added U.S. tariffs (effective March 7, 2025): https://www.cbp.gov/newsroom/announcements/official-cbp-statement-tariffs

• EDC – Tariffs FAQ + $5B in support for exporters: https://www.edc.ca/en/article/tariffs-impact-canada-exporter.html

• BDC – Tariff support hub (“Pivot to Grow” $500M financing & advisory): https://www.bdc.ca/en/about/mediaroom/news-releases/bdc-brings-500m-new-financing-advisory-services-and-strategic-insights-help-businesses-pivot-and-mitigate-impacts-uncertainty-around-us-tariffs

• FedDev Ontario – Funding for southern Ontario (active intake; tariff response priority): https://feddev-ontario.canada.ca/en/funding-southern-ontario feddev-ontario.canada.ca

• CRA – Temporary interest/penalty relief period for GST/HST and T2 (ended June 30, 2025; interest resumed July 1): https://www.canada.ca/en/revenue-agency/services/support-difficult-situations/tax-relief-businesses-tariffs.html

• CBSA Duties Relief Program: https://www.cbsa-asfc.gc.ca/import/ddr-red/relief-report-eng.html

• CBSA Duty Drawback Program: https://www.cbsa-asfc.gc.ca/import/ddr-red/drawback-eng.html

• Canada Tariff Finder (HS lookup & tariff rates): https://www.tariffinder.ca/

Ontario Relief, Programs & Tools

• Protect Ontario Financing Program (launched Aug 13, 2025) – up to $1B in liquidity support (loans) for sectors hit by U.S. tariffs (steel, aluminum, auto):
  https://news.ontario.ca/en/release/1006305/province-launching-protect-ontario-financing-program-to-support-sectors-impacted-by-us-tariffs

• Six-month provincial tax interest & penalty relief (Apr 1–Oct 1, 2025) for select Ontario-administered business taxes: https://budget.ontario.ca/2025/chapter-1a.html

• Ontario Together Trade Fund (OTTF) – supports SMEs to reshore/diversify and build trade resiliency: https://www.blg.com/en/insights/2025/05/ontarios-new-trade-fund-everything-you-need-to-know

• “Building Fortress Am-Can” (Ontario’s Am-Can growth plan & related initiatives): https://www.ontario.ca/page/building-fortress-am-can-ontarios-am-can-growth-plan

Local & Partner Resources

• Simcoe County – Tariff Resources for Local Businesses: https://edo.simcoe.ca/tariffs/

• Nottawasaga Futures – Local business support & funding: https://nottawasaga.com

• Excellence in Manufacturing Consortium (EMC) – Events and resources on tariffs: https://emccanada.org/events/supporting-canadian-manufacturers-amidst-tariff-pressures

• Invest Ontario – Programs & trade offices to help with export diversification and investment: https://www.investontario.ca/

• Canadian Chamber – Canada-U.S. Trade Tracker (data & exposure by region/industry): https://businessdatalab.ca/canada-u-s-trade-tracker/

Disclaimer

Trade measures can change quickly. Always verify the latest details with the official sources linked above and your customs broker/counsel. If you need help interpreting any of this for your specific products or supply chain, reach out—we’ll work through it with you.

Together, we can ensure BWG businesses remain competitive and informed. If you have any questions, please contact the Economic Development team at ecdev@townofbwg.com.