Trump's trade war with Canada: A timeline of how we got here

Canada Carney
Photo credit AP News/Adrian Wyld

NEW YORK (AP) — President Donald Trump's barrage of tariffs has quickly strained the United States' longstanding relationship with Canada over the last year.

Since taking office in January, Trump has threatened Canada's economy and sovereignty with steep import taxes on its goods. He's even claimed that America's neighbor to the north could be “the 51st state.” That rhetoric — paired with volleys of on-again, off-again new tariffs — has outraged Canadians and created wider uncertainty for businesses and consumers across both countries.

Canada has responded with retaliatory trade measures. And just this week, Canadian Prime Minister Mark Carney outlined plans to double its non-U.S. exports in the next decade. Trump also promised to end “all trade negotiations” with Canada over a television ad from the Ontario government opposing his levies — although the province has since said it will pause that campaign.

Here's a timeline of how we got here.

January

On his first day in office, Trump says he expects to put 25% tariffs on imports from Canada starting on Feb. 1.

February

Trump signs an executive order to impose 25% tariffs on imports from Canada starting Feb. 4 — invoking this power by declaring a national emergency, ostensibly over undocumented immigration and drug trafficking.

Then-Canadian Prime Minister Justin Trudeau promises to respond by matching 25% tariffs on up to $155 billion in U.S. imports. But days later, Trump agrees to a 30-day pause, cooling tensions at least temporarily.

March

Trump’s 25% tariffs on imports from Canada go into effect on March 4, though he limits the levy on Canadian energy to 10%. In response, Trudeau announces counter tariffs on more than $100 billion of American goods over the course of 21 days.

But Trump soon grants a one-month exemption on these tariffs for U.S. automakers — and later postpones his 25% tariffs on goods that comply with the US-Mexico Canada Agreement, a trade pact from his first term. The action thaws relations with Canada somewhat, which suspends a second wave of its retaliatory tariffs, although uncertainty remains.

Worldwide, Trump’s new steel and aluminum tariffs — which now tax imports of both metals at 25% — still go into effect March 12. Canada then imposes more retaliatory tariffs worth $29.8 billion Canadian dollars ($20.7 billion) on U.S. imports, beginning March 13.

April

Trump announces his long-promised “reciprocal” tariffs on nearly all of America’s trading partners April 2, but doesn’t unveil additional levies on Canada.

The White House says USMCA-compliant imports can continue to enter the U.S. duty-free — and once Trump’s demands on immigration and drug trafficking are satisfied, the tariff on the rest of their imports may drop from 25% to 12%.

Still, as part of further levies impacting trading partners worldwide, Trump’s sweeping 25% tariffs on auto imports begin April 3, starting with taxes on fully-imported cars. In response, Canadian Prime Minister Mark Carney matches the 25% levies with a tariff on non-USMCA compliant vehicles imported from the U.S. starting April 9.

Trump later signs an executive order to relax some of his auto tariffs, but relief is limited.

May

On May 28, the U.S. Court of International Trade blocks Trump from imposing the bulk of his most sweeping tariffs — ruling that the president overstepped his authority when he invoked an emergency powers law to slap import taxes on almost every country in the world, including levies imposed on Canada. But just a day later, a federal appeals court temporarily halts the order.

June

Worldwide, Trump’s new 50% tariffs of nearly all foreign steel and aluminum take effect June 4. Carney later threatens to impose new tariffs on U.S. steel and aluminum starting in July, pending progress of trade talks. The Canadian Prime Minister says that Trump’s trade war is running the risk of a global recession.

Trump says he's suspended trade talks with Canada over its plans to continue with a tax on technology firms. But days later, Carney says Canada will rescind implementing that tax, called the Digital Serves Tax, and says that talks will resume.

July

Trump sends a letter to Canada warning that the U.S. will heighten its tariffs against the country to 35% starting Aug. 1, up from 25% imposed in March — although some goods are currently protected under the USCMA pact. At the time, Carney maintains that Canada will continue to work towards a deal by the new deadline.

August

Trump’s heightened 35% tariff rate on a range of Canadian goods take effect on Aug. 1. Globally, the U.S.'s new 50% levy on imported copper also kicks in.

Later in the month, Carney says that Canada will drop many of its retaliatory tariffs to match U.S. exemptions for goods covered under the USMCA pact. Critics decry the move as capitulation to Trump, but the prime minister maintains Canada is in a good position and that such exemptions would jump-start further trade talks.

Low-value imports coming into the U.S. lose their duty-free status with the end of the “de minimis” rule on Aug. 29. The withdrawal applies to all countries, including Canada.

Meanwhile, a federal appeals court rules that Trump illegally used emergency powers to impose sweeping tariffs worldwide — but leaves the import taxes in place for now. The Trump administration later appeals to the Supreme Court.

October

For trading partners worldwide, Trump’s new tariffs on kitchen cabinets, bathroom vanities and upholstered wooden furniture go into effect on Oct. 14, starting with a 25% levy on many of these imports — ahead of steeper rates scheduled for Jan. 1.

On Oct. 22, Carney outlines plans for Canada to double its non-U.S. exports in the next decade. He points to Trump's tariffs — noting that affected jobs across Canada are “under threat” and that the new levies are causing a chill in investment.

A day later, Trump says he’s ending “all trade negotiations” with Canada — in an abrupt move over a television ad opposing U.S. tariffs, which Trump claims misstated the facts and was aimed at influencing court decisions. The ad was paid for by the Ontario provincial government, not the Canadian federal government. Ontario Premier Doug Ford later says he’s pulling the TV ad so trade talks may resume.

Featured Image Photo Credit: AP News/Adrian Wyld