A fresh set of U.S. tariffs on Canadian goods commenced past midnight on Tuesday, imposing 50 percent duties on 110 items such as specific cheeses, motorboats, ATVs, and furniture. These new tariffs are part of a series of changes announced by the Trump administration last week. The additions to the tariff list encompass aluminum products, paper and wood products, iron or steel beams, electric lamps, and mattresses.
Simultaneously, the White House declared the removal of tariffs on 10 items including salt, sugar, cement, switchboards, and toilet paper to alleviate the burden on U.S. commerce. In 2024, Canada exported about $328 million worth of toilet paper to the U.S., emerging as the primary international supplier. Moreover, Canada is a significant salt provider to the U.S., with imports totaling around $159.2 million in 2025.
According to Wolfgang Alschner, a trade law expert at the University of Ottawa, the removals and additions of tariffs balance out economically. The categories with removed tariffs represent approximately $2.41 billion, while the newly added tariffs cover about $2.56 billion of 2025 trade. The most substantial economic impact is seen in switchgear assemblies and switchboards, where the U.S. imported about $750 million from Canada in 2025.
The U.S. and Canada could not reach a trade agreement in August, escalating their ongoing trade war. On August 22, the U.S. imposed 50 percent tariffs on Canadian goods, to which Canada responded with tariffs on nearly 700 categories of U.S. goods effective September 8.
In addition to the new tariffs, President Trump announced a pending import ban on Canadian alcohol, motorcycles, and other goods from September 29. Experts warn that the trade war’s expansion could lead to regional disruptions, causing job losses and business closures.
The latest tariffs may restrict certain Canadian companies from making strategic shifts. For instance, the imposition of hyper-specific tariffs could eliminate some options previously available to businesses.
Economist Andrew Dicapua suggests that the delayed implementation of import bans and the U.S.’s subdued reaction to Canada’s retaliatory tariffs indicate a potential for negotiation and a step closer to a deal. Trump’s recent comments also hint at the possibility of a trade deal with Canada in the near future, signaling a potential resolution to the ongoing trade tensions.
