When you look at the border between Canada and the United States, it’s usually described as the longest undefended border in the world. For decades, that lack of defense applied to your wallet, too. But if you’re asking do Canada have tariffs on US goods prior to 2025, the answer isn't a simple "no." While the vast majority of stuff crossed the line duty-free, the years leading up to the 2025 trade shake-up were actually peppered with some pretty intense tariff "skirmishes."
Honestly, it’s a bit of a rollercoaster. Most of the time, trade was governed by the United States-Mexico-Canada Agreement (USMCA)—which Canadians call CUSMA. Basically, if a product was made in North America, it didn't face a tariff. But when things got political, the gloves came off.
The Era of Retaliation: 2018 to 2020
You might remember the "Steel and Aluminum War." In 2018, the Trump administration slapped a 25% tariff on Canadian steel and a 10% tariff on aluminum, citing national security. Canada didn't just sit there. They hit back. Hard.
The Canadian government released a list of "countermeasures" that targeted about $16.6 billion worth of U.S. exports. These weren't just random items; they were strategically picked to hurt the home states of key U.S. politicians. We’re talking about things like:
- Florida orange juice
- Kentucky bourbon
- Wisconsin toilet paper
- Pennsylvania chocolate
- Ketchup and pickles
Those were real tariffs on US goods long before 2025. If you were a Canadian business importing U.S. steel or a consumer buying American-made yogurt back in 2018, you were paying more because of these duties. This specific fight lasted until May 2019, when both sides agreed to drop the surtaxes.
The Quiet Period and Selective Duties
After the 2018-2019 mess, things calmed down, but Canada always kept a few specific tariffs in its back pocket.
People often forget about "Supply Management." This is a huge deal in Canadian politics. To protect local farmers, Canada has always had massive tariffs—sometimes over 200%—on U.S. dairy, poultry, and eggs that exceeded certain quotas. So, if a U.S. company tried to dump thousands of gallons of milk into the Ontario market, they’d face a wall of taxes.
Then came 2020. Another brief spike happened when the U.S. briefly reimposed aluminum tariffs. Canada prepared a $3.6 billion retaliation list, but the U.S. backed off just hours before the Canadian tariffs were set to go live.
2024: The Calm Before the 2025 Storm
By the time we hit 2024, the trade relationship was mostly stable but definitely tense. Canada was moving toward a Digital Services Tax (DST), which the U.S. hated. The U.S. argued this was a "hidden tariff" on American tech giants like Google and Amazon.
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While no broad 25% "border tax" existed in 2024, the groundwork for the 2025 trade war was being laid. In late 2024, Donald Trump (then a candidate) began threatening a blanket 25% tariff on all Canadian goods due to border security and fentanyl concerns. Canada started prepping their own retaliatory packages, but those didn't actually hit the books until early 2025.
What Did These "Prior" Tariffs Actually Feel Like?
For the average person, these pre-2025 tariffs were mostly invisible unless you were a specialized importer.
If you were a contractor in 2018, your costs for American-made structural steel suddenly jumped by a quarter. If you were a grocery shopper, maybe that specific brand of U.S. strawberry jam got a little pricier. But unlike the 2025 scenario where everything from energy to electronics got hit, the prior tariffs were "sectoral." They hit specific industries to make a point.
Actionable Insights: Navigating the Trade History
If you're looking back at this era to understand how trade works now, here are a few things to keep in mind:
- Origin Matters More Than Purchase Location: Even before 2025, a product bought in the U.S. but made in China was subject to different rules than something made in Ohio. This "Rules of Origin" concept is the backbone of CUSMA/USMCA.
- Retaliation is a Pattern: Canada’s move in early 2025 to slap $30 billion in tariffs on U.S. goods wasn't a new idea. They used the same playbook in 2018. If the U.S. moves, Canada almost always moves back in kind.
- Exemptions Exist: Even when tariffs are active, there are usually "remission orders." These allow businesses to apply for relief if they can prove they can't get a specific part or material from anywhere else but the U.S.
Essentially, the "pre-2025" world wasn't a perfect free-trade paradise. It was a period of high integration occasionally interrupted by sharp, targeted tax fights that paved the way for the massive trade disruptions we're seeing today.
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To stay ahead of current trade changes, you should regularly check the Canada Border Services Agency (CBSA) "Customs Notices." They are the first to post when a "Surtax Order" is updated or repealed. Also, keep an eye on the Global Affairs Canada website for any new "Notice of Intent" to impose retaliatory duties—it's usually the best way to see a trade storm coming before it actually makes landfall at the border.