The speculation whether the Trump administration would impose tariffs is over. With an executive order declaring a national emergency related to fentanyl and immigration, President Trump used his authority under executive order to impose a general tariff of 25 percent on all imports from Canada, and a decreased tariff of 10 percent on certain energy or energy resources. These tariffs become effective on February 4th.
In response to the imposition of U.S. tariffs, the Canadian federal government released a tranche of initial tariffs on U.S. imports at the rate of 25 percent. These initial tariffs cover CAD $30 billion in products. NAEDA has analyzed the list of those tariffs and included those relevant to dealers in an information sheet below.
View Tariff Information Sheet Here
The initial tariffs include items related to agriculture and products dealers sell. More information about Canada’s counter-tariffs can be found Here. We advise you to discuss with your OEM the products they believe will be affected by these initial tariffs.
Next Steps
The Canadian federal government has made clear there will be additional tariffs imposed after 21 days from the date of the initial tariffs, totaling CAD $125 billion in U.S. imports. In addition, President Trump’s executive order reserved the right to impose additional tariffs in response to any counter-tariffs from Canada, creating the very real possibility of escalating Canadian tariffs beyond those already telegraphed.
Without intervention, there is a greater likelihood the impending additional tariffs will encompass dealer products on the wholegoods and parts side. This week, NAEDA will be advancing letters to the Canadian and U.S. governments to urge excluding agricultural machinery from existing and future tariffs. NAEDA will be working with stakeholders across North America to convince leaders of both nations that the interests of food security combined with current market realities requires exempting agricultural equipment from the escalation of tariffs.
NAEDA will continue to monitor the situation for exemption and exclusion processes in both countries and will keep dealers updated as the situation evolves. Please contact your association office with any questions or concerns you have.
