U.S. Tariffs and their impact on Smiths Falls businesses

Last updated: March 13, 2025

Latest News

March 12, 2025: The 25% tariffs on Canadian steel and aluminum are now in effect, with Canada implementing an equal 25% retaliatory tariff. 

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March 10, 2025, Ontario introduced a 25% surcharge on electricity exports to the U.S. as a countermeasure to the tariffs on Canadian goods, with the goal of supporting local industries and responding to U.S. trade actions.

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March 7, 2025: Fighting for Canadian workers and businesses, News Release, Government of Canada

New: Export Development Canada (EDC), through the Trade Impact Program, deploys $5 billion to help Canadian exporters.

On March 6, 2025, the U.S. Administration announced a temporary suspension of tariffs on Canadian goods that comply with the Canadian-United States-Mexico Agreement (CUSMA) until April 2.

• Additionally, the tariff on potash, a key ingredient in fertilizer, has been reduced to 10% from 25%.
• A one-month exemption was also granted to automakers complying with USMCA.

These changes follow the March 4, 2025, decision to impose a 25% tariff on Canadian exports, a 10% tariff on energy products, and a 25% tariff on steel and aluminum, set to take effect on March 12. In response, Canada has implemented immediate 25% counter-tariffs on $30 billion worth of U.S. goods, with an additional $125 billion in tariffs coming March 25.

Economic Development is committed to help businesses navigate tariffs, explore trade agreements, and expand globally. Share your concerns to connect with the right resources, supports, and partners.

Background: How We Got Here

On February 1, 2025, President Trump had initially imposed a 25% tariff on all imports from Canada, significantly impacting Canada’s economy by raising costs and disrupting deeply integrated supply chains essential to businesses in both countries. That same day, Prime Minister Trudeau announced a reciprocal 25% tariff on $155 billion worth of U.S. goods entering Canada. Both governments agreed to pause the tariffs for 30 days to allow for negotiations, but no resolution was reached.

Further escalating tensions, on February 11, 2025, the U.S. government announced a 25% tariff on all steel and aluminum imports, set to take effect on March 4. Canada supplies nearly 25% of the steel imported by the U.S. and close to 60% of its aluminum, making this a major concern for manufacturers and businesses in Smiths Falls that depend on cross-border trade.