Here's what we know about which U.S. goods are still subject to Canadian tariffs
There are a further set of exemptions, too. The first is an exemption for some auto manufacturers that continue to produce vehicles in Canada and carry out planned corporate investments. This represents a $35.6-billion exemption, analysis suggests.
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The second, writes Tony Stillo of Oxford Economics, is for 'manufacturing, processing, and food and beverage packaging, and on those used for public health, health care, public safety, and national security.' This, likely worth a bit more than $20 billion, includes some steel and aluminium. This exemption will run for six months, from mid-April to mid-October 2025.
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'A lot of those intermediate goods that go into manufacturing, food packaging and things of that nature, are eligible for relief,' said Stillo in an interview.
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Yes. 'There's still a degree of uncertainty about what qualifies for exemption,' said Stillo.
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There are several exemption categories that are less clear. This includes the public health, health care, public safety and national security products, which Stillo estimates are worth around $3.2 billion.
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Why are some things tariffed and others not?
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While it's tough to say exactly why some decisions were made by the federal government, Stillo has a hunch: There are some goods that are easily replaced. For example, Canadians can buy Canadian chicken instead of American chicken. Or chicken could be sourced from other countries. This is similarly true with all sorts of food and all sorts of cosmetics and clothing.
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However, there are some goods and materials moving through North America's heavily integrated supply chain that can't easily be swapped out.
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'What the government's trying to do, and I think this is really a good plan, is we realize that it's going to be tough for a lot of our manufacturers to source from non-U.S. sources, and they're giving them time to find an alternative source,' said Stillo. 'I think the Canadian government appreciates the damage that a trade war can inflict, and they strategically aim to target counter tariffs that would be more harmful to the U.S. and Canada.'
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What does this all mean?
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It also means that, fundamentally, the United States has an effective tariff rate of 14.1 per cent on Canadian goods, while Canada's effective tariff rate is more like 2.8 per cent, if you account for all the tariff relief.
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