Which Canadian Provinces and Sectors Face the Greatest Threat from US Tariffs?

January 17, 2025 TruthUSA

Canada is facing the possibility of 25 percent tariffs on all exports to the United States once Donald Trump assumes office on Jan. 20.

Despite efforts by Canada to prevent these tariffs through enhanced border security measures, the incoming president has maintained his stance on imposing significant tariffs on Canada.

According to the Canadian Chamber of Commerce, exports to Canada support 1.4 million American jobs and exports to the United States support 2.3 million Canadian jobs. The total annual two-way trade between the countries amounts to $1.3 trillion.

If the United States proceeds with the tariffs, Canada has pledged to implement retaliatory measures.

The Chamber warned that these 25 percent tariffs could reduce Canada’s GDP by 2.6 percent and increase costs for families by $1,900 per year for items like cars, food, and energy.

The impact on Canada’s economy would depend on the specific items and tariff percentages, which remain unknown. In 2018, Trump imposed 25 percent tariffs on steel products and 10 percent on aluminum products.

In response, Canada applied 25 percent tariffs on U.S. steel, 10 percent tariffs on aluminum products, and 10 percent tariffs on various food, household items, and appliances. In May 2019, the United States and Canada reached an agreement to eliminate these tariffs. However, during this period, Canada’s monthly duties increased from around $47 million in 2017 to nearly $190 million, while the U.S. saw its monthly duties rise from over $24 million to $205 million.

Breakdown

Ontario would be most impacted by U.S. tariffs, with $446 billion in trade with the U.S. in 2023. Nearly 20,000 businesses and 985,865 jobs in Ontario depend on exports to America. The tariffs could potentially result in the loss of between 450,000 to 500,000 jobs in the province.

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