By Promit Mukherjee
OTTAWA, Aug 24 (Reuters) – Canada and the United States have been locked in a tariff war since U.S. President Donald Trump returned to office in January 2025.
The dispute has impacted steel, aluminum, automobiles, lumber and other industries, prompting Canadian retaliation and repeated rounds of negotiations and tariff threats.
Talks to avert 50% U.S. tariffs on around $20 billion of Canadian goods broke down late on Friday, spurring a pledge from Prime Minister Mark Carney to retaliate.
Here is a timeline of key developments in the trade dispute that have upended the decades-old relationship:
FEBRUARY 1, 2025 – TRUMP ANNOUNCES TARIFFS ON CANADA
Trump announced tariffs on Canadian goods to take effect on February 4. Canada responded by announcing a C$155 billion retaliatory tariff package, with duties on an initial C$30 billion of U.S. imports.
FEBRUARY 3, 2025 – TARIFFS PAUSED FOR 30 DAYS
The United States agreed to pause the tariffs on Canada for 30 days; Canada suspended retaliation.
FEBRUARY 10, 2025 – TRUMP TARGETS STEEL AND ALUMINUM
Trump signed orders imposing 25% tariffs on steel and aluminum imports from all countries, including Canada, starting on March 12.
MARCH 4, 2025 – U.S. TARIFFS TAKE EFFECT, CANADA RETALIATES
U.S. tariffs of 25% on Canadian goods and 10% on Canadian energy products took effect.
Canada retaliated with 25% tariffs on C$30 billion worth of U.S. products, including orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel and motorcycles.
MARCH 6, 2025 – U.S. GIVES USMCA-COMPLIANT GOODS A REPRIEVE
Washington exempted imports compliant with the U.S.-Mexico-Canada Agreement from the tariffs. Canada, under then Prime Minister Justin Trudeau, suspended a planned second wave of retaliation.
MARCH 12-13, 2025 – METALS TARIFFS TRIGGER MORE CANADIAN RETALIATION
U.S. tariffs of 25% on steel and aluminum imports took effect.
Canada responded the following day with 25% tariffs on C$29.8 billion of U.S. goods, including steel and aluminum products, computers, servers, display monitors and sporting equipment.
MARCH 26, 2025 – TRUMP ANNOUNCES 25% AUTO TARIFFS
Trump ordered a 25% tariff on automobiles imported into the United States from April 3.
For vehicles imported under the USMCA agreement, tariffs would apply only to the value of content not produced in the United States.
APRIL 9, 2025 – AUTO TARIFF BATTLE INTENSIFIES
Canada announced 25% counter-tariffs on non-CUSMA-compliant vehicles imported from the United States and on the non-Canadian and non-Mexican content of compliant vehicles.
MAY 6, 2025 – CARNEY MEETS TRUMP
Prime Minister Mark Carney made his first visit to the White House since becoming prime minister, seeking to reset relations.
JUNE 3, 2025 – U.S. DOUBLES STEEL AND ALUMINUM TARIFFS
The United States announced an increase in its tariffs on imported steel and aluminum to 50% from 25%.
JUNE 16, 2025 – TRUMP AND CARNEY SET 30-DAY TARGET FOR A DEAL
Carney and Trump met on the sidelines of the Group of Seven summit in Kananaskis, Alberta.
JUNE 27-29, 2025 – DIGITAL TAX DERAILS TALKS, CANADA RETREATS
Trump abruptly ended trade talks with Canada over its digital services tax, which was due to begin collecting payments from large technology companies.
Two days later, Canada rescinded the tax in an effort to restart negotiations with Washington.
JULY 31, 2025 – TRUMP RAISES TARIFF ON NON-USMCA GOODS TO 35%
Trump signed an order increasing tariffs on Canadian products that did not qualify for USMCA preferential treatment to 35% from 25%.
The White House linked the measures to what it said was Canada’s failure to curb the flow of fentanyl into the United States, a claim that was not supported by official data.
AUGUST 22, 2025 – CANADA REMOVES MOST RETALIATORY TARIFFS
Carney announced Canada would remove retaliatory tariffs on a broad range of U.S. goods while keeping counter-tariffs on steel, aluminum and automobiles.
SEPTEMBER 29, 2025 – U.S. ADDS SOFTWOOD LUMBER TARIFF
Trump imposed an additional 10% tariff on Canadian softwood lumber, taking total U.S. levies on the product to more than 45%.
OCTOBER 7, 2025 – CARNEY RETURNS TO WHITE HOUSE
Carney met Trump in the Oval Office for a second time.
OCTOBER 24, 2025 – TRUMP SUSPENDS TRADE TALKS
Trump suspended trade negotiations with Canada over an advertisement aired by the Ontario government that used comments by former U.S. President Ronald Reagan criticizing tariffs.
JUNE 2, 2026 – USTR IMPOSES 12.5% TARIFFS
The office of the U.S. Trade Representative issued an order imposing an up to 12.5% tariff on 60 countries for failing to curb trade in goods made with forced labor, including Canada. Canada says it has always followed strict rules to restrict products from countries that used forced labor.
JULY 1, 2026 – TRUMP DECLINES TO RENEW USMCA
Trump declined to renew the continental free trade pact, subjecting it to annual reviews.
JULY 20, 2026 – SECTION 338
Trump signed three proclamations invoking the Depression-era Section 338 Tariff Act to impose additional 50% tariffs on some $20 billion of Canadian goods such as Canadian wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment. The threat led to intensive engagements between the two sides as Canada sought to avert the tariffs.
AUGUST 22, 2026 – TALKS BETWEEN U.S. AND CANADA COLLAPSE
The U.S. imposed the 50% tariffs on some Canadian goods on Saturday after the two sides failed to reach a trade deal; Carney suspended trade talks, called back his negotiators from Washington and vowed dollar-for-dollar retaliation.
AUGUST 24, 2026 – TRUMP ANNOUNCES NEW AUTO TARIFFS
On Monday, Trump announced 50% tariffs on Canadian cars, trucks and automotive parts to come into effect from January 1, 2027.
(Reporting by Promit Mukherjee; Editing by Caroline Stauffer and Daniel Wallis)
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