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Canada

US Revised Tariffs (%)

35

Ease of doing business

theboardiQ Tariffs Dashboard:

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Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.

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Revised Tariff %
Original Tariff %
Country Tariff Rate %
Share of US Imports % (1 implies <1%)
35
25
1.4
12.6
Exports (in USD Bill.) 2024
Imports (in USD Bill.) 2024
Balance (in USD Bill.) 2024
349.36
412.7
-63.34

Implications

The trade relationship between the U.S. and Canada has entered a volatile phase as of January 2026. While the USMCA (CUSMA) provides a shield for most goods, recent geopolitical shifts—specifically Canada's recent sector-specific trade adjustments with China—have triggered new threats of escalation from the U.S. administration.


Latest US Tariffs Update (January 2026)


As of January 1, 2026, new rates took effect on specific household goods. The current tariff landscape is a "dual-track" system: low/zero rates for USMCA-compliant goods and heavy penalties for non-compliant or transshipped goods.


  • Household Goods (New for 2026): Tariffs on kitchen cabinets, vanities, and upholstered wooden products from non-agreement sources (or those failing compliance) rose to 30%–50%.

  • Softwood Lumber: Total duties now exceed 35% following October 2025 hikes.

  • Steel & Aluminum: Maintain a heavy 50% tariff rate (Section 232) unless specific exemptions are maintained.

  • Compliance Baseline: A 35% tariff applies to any goods failing to meet USMCA "rules of origin" requirements.

  • Energy & Potash: A 10% tariff remains on non-compliant energy products, though ~85% of Canadian energy exports currently bypass this via compliance.

  • The "100% Threat": On January 24, 2026, President Trump threatened a 100% "blanket tariff" if Canada pursues a broad free trade deal with China, though PM Mark Carney has clarified recent deals were limited to specific sector "rectifications."


Major Companies Impacted


The impact is concentrated in capital-intensive sectors with integrated cross-border supply chains.


Company

Sector

Primary Risk Factor

Nutrien

Chemicals/Agri

61% of revenue from U.S.; high exposure to potash tariffs.

Enbridge

Energy

Operates critical cross-border pipelines; sensitive to the 10% energy levy.

Magna International

Automotive

Deeply integrated; vulnerable to "rules of origin" changes and steel costs.

Stelco / Algoma Steel

Steel

Directly hit by 50% Section 232 duties on non-exempt shipments.

West Fraser Timber

Forestry

Major exporter of softwood lumber currently facing 35%+ duties.

Saputo

Food/Dairy

High U.S. revenue share (45%); targeted in USMCA dairy access disputes.

GDP & Trade Balance (BOT) YTD

The Canadian economy is showing "fractured resilience"—while overall growth persists, trade-exposed sectors are in a technical slump.

  • GDP Impact: The Bank of Canada projects that U.S. tariffs will reduce the level of Canadian GDP by 1.5% by the end of 2026. Annual growth is forecasted at a modest 1.4%.


  • Balance of Trade (BOT) YTD: Early 2026 data shows a narrowing surplus. While energy prices have provided a cushion, manufacturing exports are down ~1.5% year-over-year.

  • Effective Tariff Rate: Interestingly, because Canadian firms have aggressively moved to meet USMCA compliance, the effective average tariff paid on all exports is roughly 3.8%–5.9%, far lower than the "headline" rates of 25% or 35%.


SWOT Analysis: Canadian Trade Economy 2026

Strengths

Weaknesses

* USMCA Integration: 90%+ of goods still enter the U.S. duty-free via compliance.


* Resource Wealth: U.S. dependence on Canadian oil/gas limits how high energy tariffs can go.

* Market Concentration: ~75% of exports go to a single, increasingly protectionist market.


* Manufacturing Slump: High input costs (steel/alum) hurting Ontario's auto hub.

Opportunities

Threats

* Supply Chain Reshoring: Canada can position itself as the "secure" North American alternative to China.


* Diversification: Renewed focus on EU (CETA) and Indo-Pacific markets to reduce U.S. reliance.

* USMCA 2026 Review: The July 2026 "Sunset Clause" review could lead to a total deal overhaul.


* Political Volatility: Rapid-fire tariff threats via social media creating "investment paralysis."


US Revised Tariffs

Country Tariffs

Balance of Trade

Commercial Guide

Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals

Tariff Rate for US

World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.

US Imports Guide 

United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.

Investing in USA

theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters

Sources : ForbesUSDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia International Trade Administration

theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.

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