Canada’s engagement with the United States

On February 1, 2025, President Trump signed an Executive Order applying 25 per cent tariffs on all U.S. imports from Canada, with energy and potash imports subject to a 10 per cent tariff under the International Emergency Economic Powers Act (IEEPA). On February 3, the President announced a pause on these tariffs until March 4.

Following the pause, U.S. tariffs on all imports from Canada went into effect from 12:01 am Eastern time on March 4, 2025, to midnight on March 6, 2025, regardless of whether they qualified for preference under the CUSMA.

In a March 6, 2025 Executive Order, as of 12:01 am Eastern time on March 7, 2025, U.S. tariffs have been paused for goods imported from Canada that qualify for preferential treatment under the Canada-United States-Mexico Agreement (CUSMA).

U.S. imports from Canada that occurred while the tariffs were in place (i.e., 12:01 am Eastern time on March 4, 2025, to 12:00 am Eastern time on March 7, 2025) were subject to the 25 per cent or 10 per cent tariff rate.

The March 6, 2025, Executive Order amending tariffs on imports from Canada (implementing the CUSMA exemption) does not include an end date for the CUSMA exemption.

As of March 7, tariffs have been paused for goods imported from Canada that qualify for preferential treatment under the CUSMA.

For the vast majority of goods (over 98 per cent of tariff lines and over 99.9 per cent of bilateral trade between Canada and the U.S.), traders will be able to claim preference under the CUSMA if they meet the Agreement’s rules of origin.

To qualify for preferential treatment when imported into the U.S., a good must meet the CUSMA rules of origin, which determine how much production must be undertaken in North America for goods to be considered originating under the Agreement. 

If a good meets the rules of origin, it is not automatically granted duty-free tariff treatment. This benefit must be claimed by the importer on the basis of a certification of origin. Goods that do not satisfy the rules of origin are considered non-originating and are not eligible for preferential tariff treatment under the Agreement.

Some Canadian exporters have not sought preferential treatment under CUSMA, because they previously traded with the U.S. under the broader tariff regime applicable to all World Trade Organization members (Most-Favoured Nation trade status), often with very low or zero tariff rates. These goods would now be subject to the IEEPA tariffs unless they meet the CUSMA rules of origin and make a claim for preferential tariff treatment.

U.S. tariffs on Canadian energy and natural resources exports are counterproductive to both countries' economic and security interests, as well as broader geopolitical stability. Canada plays a crucial role in supporting American households and industries by ensuring a reliable and affordable supply of energy – including crude oil, natural gas, electricity, and uranium.

Many U.S. refineries are specifically configured to process the roughly 4 million barrels per day of heavy crude oil that Canada supplies, supporting American jobs and industrial operations at a cost of US$6 billion less per year than comparable foreign crude oil grades. Moreover, Canadian natural gas meets half or more of demand in eight U.S. states, while Canadian uranium meets 27% of U.S. demand for nuclear fuel, enough to power roughly 20 million U.S. homes. Tariffs on these resources would increase costs for U.S. consumers and industry through higher costs for heating, cooling and power and input costs.

Critical minerals are also essential to U.S. defense, technology, and energy industries, forming the backbone of the semiconductor, permanent magnets, and advanced manufacturing sectors. Tariffs on Canadian critical minerals would disrupt supply chains, undermining North American competitiveness and security, and increasing the U.S.’s reliance on less-friendly sources.

Tariffs and increased duties on Canadian forest products—76% of which are exported to the U.S., supplying 30% of domestic demand—would increase costs for American industries, such as construction and furniture manufacturing, that rely on Canadian wood, pulp, and paper. Similarly, tariffs on Canadian softwood lumber will increase the cost of new housing in the U.S.

Yes, the RCMP works closely with numerous U.S. law enforcement agencies and other international partners to help secure the nearly 9,000 km Canada-U.S. border, as well as Canada's expansive coastline. The RCMP participates in numerous cross-border initiatives that allow for joint operations and investigations.

Additionally, the RCMP communicates and collaborates with its U.S. partners to address any increases in activity at the Canada-U.S. border through existing channels, such as the Cross-Border Law Enforcement Advisory Committee, the Integrated Cross-border Maritime Law Enforcement Operations (Shiprider), the Integrated Border Enforcement Teams, and through provincial relationships.

Regular engagement with U.S. partners enables Canadian law enforcement to shift their posture at the border in order to better respond to cross-border activity.