BY SHONDELL SABAD, SENIOR STRATEGIC ADVISOR AT THE ALBERTA ENTERPRISE GROUP

With President Trump suggesting new tariffs on imported goods beginning August 1, 2025, many Canadian exporters are wondering what this could mean for cross-border trade.

The good news? Under the USMCA (United States-Mexico-Canada Agreement), most Canadian goods remain exempt from U.S. tariffs. The agreement was designed to ensure free trade between the three partner nations and has held strong – so far.

But there’s a caveat worth understanding: Section 232.

Section 232 of the U.S. Trade Expansion Act of 1962 allows the President to impose tariffs on imports deemed a threat to national security. It was last used in 2018 to target Canadian steel and aluminum, despite USMCA protections being in place.

If invoked again, Section 232 would allow the U.S. administration to override USMCA exemptions and apply tariffs to specific industries, not all imports. That makes the risk sector-specific and politically driven.

So, what’s at risk today?

Here’s a helpful visual guide to industries currently targeted under Section 232:
Guide to Trump’s Section 232 Tariffs – Nine Maps (CFR)

While the likelihood of immediate tariffs on Canadian goods remains low, manufacturers should:

• Stay informed of changes at the US Trade Representative level
• Review their product classifications and HTS codes
• Consider expediting U.S.-bound shipments before August 1, just in case

In trade, details matter – and timing even more so.