As of April 23, 2025, the tariff situation between Canada and the United States is complex and marked by retaliatory measures. Here's a summary of the recent developments: Key Developments: U.S. Tariffs on Canada: The United States has imposed tariffs on various Canadian goods, citing national security concerns related to border security and drug trafficking. These tariffs include:   25% on most imports from Canada, effective March 4, 2025. A lower 10% tariff on Canadian energy resources and potash that do not qualify under the USMCA.   25% on all steel and aluminum products imported globally, effective March 12, 2025, removing previous exemptions for Canada. 25% on automobiles imported from Canada, effective April 3, 2025, targeting the non-U.S. content of CUSMA-compliant vehicles and all non-CUSMA compliant vehicles. The U.S. also intends to apply 25% tariffs on certain automobile parts before May 3, 2025. A 10% baseline "reciprocal" tariff on imports from all countries, including Canada, effective April 9, 2025, with potentially higher rates for countries with trade surpluses with the U.S. Canadian Countermeasures: Canada has responded with its own tariffs on U.S. goods in a dollar-for-dollar retaliation. These countermeasures include:   25% tariffs on $30 billion worth of U.S. goods, effective March 4, 2025. This list includes items like spirits, appliances, apparel, footwear, motorcycles, cosmetics, and certain pulp and paper products.   25% reciprocal tariffs on $29.8 billion worth of U.S. steel and aluminum products, as well as additional U.S. goods like tools, computers, servers, display monitors, sports equipment, and cast-iron products, effective March 13, 2025.   25% tariffs on non-CUSMA compliant vehicles imported from the U.S., and on the non-Canadian and non-Mexican content of CUSMA compliant U.S.-made vehicles, effective April 9, 2025. Impact and Support Measures in Canada: The Canadian government has acknowledged that these U.S. tariffs will harm both American and Canadian workers and businesses. To support affected Canadian industries and workers, the government has announced several measures, including: Developing a framework for auto producers to incentivize production and investment in Canada, with tariff revenues directly supporting auto workers.   Suspending rules around separation for EI for six months.   Making it easier to access EI by increasing regional unemployment rate percentages. Deferring corporate income tax payments and GST/HST remittances from April 2 to June 30, 2025, providing up to $40 billion in liquidity.   Deploying a new financing facility for businesses.   Providing more funding to regional development agencies.   A performance-based remission framework for automakers allowing tariff-free import of a certain number of U.S.-assembled, CUSMA-compliant vehicles based on continued Canadian production and investment.   A Large Enterprise Tariff Loan facility to support eligible large businesses facing difficulty accessing traditional financing.   A remission process to consider requests for exceptional relief from Canadian tariffs in specific circumstances, such as a lack of domestic or non-U.S. supply of inputs.   How Tariffs Apply at the Canadian Border: The Canada Border Services Agency (CBSA) is collecting the 25% tariffs (surtax) on applicable U.S. goods.   These tariffs apply to new and used goods marked as made in the U.S., produced in the U.S., or originating in the U.S., or goods with no country of origin marking. Travelers (both returning residents and visitors) are expected to pay applicable tariffs, duties, and taxes on purchased U.S. goods upon entry into Canada if they exceed personal exemption limits or are not considered reasonable quantities for a visitor's stay. The tariffs are added to the value of the goods before taxes (GST/HST). Goods purchased in the U.S. but originating in another country are generally exempt from these tariffs if proof of origin is available. The situation remains dynamic, and further adjustments or retaliatory measures are possible. Businesses and consumers in both countries are navigating these changes and assessing the ongoing impact on supply chains and costs.