{"id":14314,"date":"2025-08-02T11:08:59","date_gmt":"2025-08-02T05:38:59","guid":{"rendered":"https:\/\/www.immigrationxperts.com\/updates\/?p=14314"},"modified":"2025-08-02T11:11:36","modified_gmt":"2025-08-02T05:41:36","slug":"new-35-percent-tariff-canadian-trade-impact","status":"publish","type":"post","link":"https:\/\/www.immigrationxperts.com\/updates\/new-35-percent-tariff-canadian-trade-impact\/","title":{"rendered":"New Tariffs on Canadian Exports Begin: How Big Will the Impact Be?"},"content":{"rendered":"

The U.S. has imposed a 35% tariff on certain Canadian exports. President Donald Trump signed the executive order, and the policy took effect at 12:01 a.m. today. This move raises the rate from 25% and applies to goods that don’t meet CUSMA trade agreement rules.<\/p>\n

Although the news caused alarm across Canadian industries, experts suggest the actual damage may be limited. That\u2019s because around 95% of Canadian exports already qualify for tariff-free access under the Canada-U.S.-Mexico Agreement (CUSMA).<\/p>\n

Only a Few Products Will Be Affected<\/strong><\/h2>\n

Despite the broad announcement, only a limited range of products face the 35% duty. These goods often fail to qualify for CUSMA due to insufficient North American content or documentation.<\/p>\n

Eric Miller, head of the Rideau Potomac Strategy Group, said CUSMA still protects most cross-border trade. \u201cKeeping that exemption intact is crucial,\u201d he added.<\/p>\n

Certifying products isn’t simple. Each must meet strict rules of origin. This includes proving that at least 60% of a product\u2019s components come from North America. Items like beef or lumber often qualify easily. But electronics or machinery, which rely on complex supply chains, face a harder path.<\/p>\n

Certification Challenges for Small Businesses<\/strong><\/h3>\n

Daniel Kiselbach, a trade lawyer with Miller Thomson LLP, explained that many smaller exporters never certified their goods due to the process\u2019s complexity. Now, with the 35% tariff in place, those firms may need to act fast.<\/p>\n

\u201cSome companies feel caught off guard,\u201d said Kiselbach. \u201cThe system is so complex it\u2019s almost like cracking a code.<\/p>\n

Small Businesses Take the Hit<\/strong><\/h3>\n

The brunt of the new tariffs is expected to fall on small and mid-sized businesses<\/a><\/strong> that rely on international supply chains. For these companies, replacing foreign-sourced inputs with North American alternatives isn\u2019t always feasible or affordable.<\/p>\n

\u201cIf a firm has been using Chinese components for a decade, switching suppliers overnight isn\u2019t practical,\u201d said Miller. \u201cThey\u2019re now looking at a tariff increase that could wipe out their profit margins.\u201d<\/p>\n

Kiselbach echoed those concerns, warning that the 35% rate could exceed the total profit earned per unit for some firms, effectively forcing them to operate at a loss or suspend trade with the U.S.<\/p>\n

Tracking the trade war between the U.S and Canada<\/h3>\n

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\"Tracking<\/a><\/p>\n

Sector-Specific Tariffs Still in Effect<\/strong><\/h3>\n

In addition to the blanket 35% rate, several industry-specific tariffs remain active. These include:<\/p>\n