In recent years, tariffs introduced by former President Donald Trump targeted various imports to the United States, impacting trade relationships, including those with Canada. While the primary focus was on protecting U.S. industries, these measures had a ripple effect on Canada, one of the United States’ largest trading partners.

What Items Are Affected by Tariffs?

Key Canadian exports targeted by U.S. tariffs included aluminum and steel. In 2018, a 25% tariff was imposed on steel and a 10% tariff on aluminum. These raw materials are essential for the construction, automotive, and manufacturing industries, deeply entwining Canadian producers with U.S. markets. Other potential targets included lumber, a critical export for Canada’s forestry sector, and agricultural products such as dairy and maple syrup.

The tariffs weren’t limited to raw materials. Countermeasures by Canada imposed retaliatory tariffs on U.S. goods, ranging from ketchup to lawn mowers, escalating trade tensions.

Impact on Canadian Businesses

Canadian businesses reliant on exports to the U.S. faced higher production costs and shrinking profit margins. Small and medium enterprises were hit particularly hard as they struggled to absorb the added costs or find alternative markets. Meanwhile, consumers in the U.S. also felt the pinch, as the tariffs raised prices on goods made with Canadian materials.

Effects on the Average Canadian

For everyday Canadians, the impact was indirect but significant. Job insecurity grew in sectors affected by reduced trade volumes, particularly in manufacturing and resource extraction. Additionally, retaliatory tariffs led to higher prices on American imports, from food items to household goods. These economic ripples highlighted the interconnected nature of North American trade.

In a globalized economy, policies like tariffs demonstrate how decisions in one country can send shockwaves across borders, affecting industries and individuals alike. For Canadians, Trump’s trade policies underscored the importance of diversifying trade partnerships.