What were the Canadian tariffs before Trump?
Before the Trump administration, Canada had a relatively low and stable tariff structure. The country was a member of the North American Free Trade Agreement (NAFTA), which was established in 1994 and aimed to eliminate trade barriers between the United States, Canada, and Mexico. Under NAFTA, Canada enjoyed duty-free access to the U.S. market for most goods, with limited exceptions for certain agricultural products and manufactured goods.
NAFTA’s Tariff Structure
Under NAFTA, Canada faced minimal tariffs on most goods imported from the United States. The agreement allowed for the free movement of goods across the border, with the exception of a few sensitive sectors such as dairy and poultry. Tariffs on these products were kept low to protect Canadian industries and consumers from the potential influx of cheaper imports.
Specific Tariffs on Canadian Imports
For most goods, the tariffs between Canada and the United States were minimal. For example, the U.S. imposed a 2.5% tariff on dairy products, while Canada faced a 10% tariff on poultry imports. These tariffs were designed to protect the domestic industries in both countries and were considered relatively low compared to those in other countries.
Non-Tariff Barriers
In addition to tariffs, Canada also faced non-tariff barriers such as quotas and technical regulations. These barriers were designed to protect domestic industries from foreign competition and ensure that imported goods met certain standards. While these non-tariff barriers were not as significant as tariffs, they still played a role in shaping Canada’s trade policy.
Impact of Trump’s Tariffs on Canada
The election of Donald Trump as President of the United States in 2016 marked a significant shift in U.S. trade policy. Trump’s administration criticized NAFTA and accused Canada of unfair trade practices. As a result, the U.S. imposed tariffs on Canadian steel and aluminum in 2018, which were later extended to other goods, including dairy and softwood lumber.
Conclusion
Before Trump, Canada had a relatively low and stable tariff structure, largely due to its membership in NAFTA. The agreement allowed for the free movement of goods across the border, with minimal tariffs on most products. However, Trump’s administration’s trade policies significantly impacted Canada’s trade relations with the United States, leading to increased tariffs and a more complex trade environment.
