Department of Finance Canada announced the first phase of Canada's counter-tariff response to U.S. tariffs in March 2025.
The first phase applied 25% tariffs on $30 billion in goods imported from the United States, effective 12:01 a.m. on March 4, 2025.
Finance Canada also said Canada intended to expand the response if U.S. tariffs continued. The next stage would apply to an additional $125 billion of U.S. imports after a 21-day comment period, bringing the possible scope of countermeasures to $155 billion.
The announcement placed the countermeasures in the context of U.S. tariffs on Canadian goods. Canada framed its response as reciprocal and as a way to defend Canadian workers and businesses during a major trade dispute.
For importers, the first list mattered immediately because affected goods became more expensive at the border. For manufacturers and retailers, the impact depended on whether they could absorb the tariff, change suppliers, or pass costs through to customers.
The consultation list also mattered before it became law. A proposed $125 billion expansion created planning uncertainty for businesses that might later face higher import costs.
This was the starting point for several later tariff-relief and remission measures. Once counter-tariffs were in place, the policy problem shifted from whether Canada would respond to how businesses could operate inside the new tariff environment.