To call the pace of the week’s changes rapid is to risk engaging in an exercise in understatement.
To Recap the Week
At 12:01 am on March 4, 2025, the United States of America invoked the International Emergency Economic Powers Act (1977) and applied 25% tariffs on Canada and Mexico and 20% tariffs on China. The three nations represent the United States’ largest trading partners.
On March 5, 2025, the American administration issued a one-month reprieve on automotive tariffs following appeals from Ford, General Motors, and Stellantis.
On March 6, 2025, the White House further revised North American trade policy, including these four points.
- 25% tariffs on goods that do not satisfy U.S.-Mexico-Canada Agreement (USMCA) rules of origin.
- A lower 10% tariff on those energy products imported from Canada that fall outside the USMCA preference.
- A lower 10% tariff on any potash imported from Canada and Mexico that falls outside the USMCA preference.
- No tariffs on those goods from Canada and Mexico that claim and qualify for USMCA preference.
Of note: Thursday’s tariff policy is another temporary measure intended to expire, per CBC News, on April 2, 2025. CTV news further reports that the exemptions would not be retroactive to initiating tariffs on March 4, 2025.
The Canadian Response
In response to the events of March 4, 2025, the Government of Canada applied $30 billion of tariffs on select American goods. Canada’s second wave of tariffs on an estimated $125 billion in U.S. products has been put on pause, considering the events of March 6, 2025.
Similarly, the Government of Ontario has confirmed that it will continue with its provincial tariff response of applying a 25% surcharge on energy exports to the United States, first announced on March 4, 2025. These exports provide power to 1.5 million homes in the United States. March 4, 2025, further saw the Government of Ontario cancel a $100 million contract with Starlink, and remove American alcohol from the LCBO. Global News reports that Ontario imports $965 million in alcohol annually and that the LCBO stocks 3,600 different products from 36 American states.
What’s Next?
As of March 12, 2025, the U.S. Administration is expected to apply 25% tariffs on global steel and aluminum imports. Despite the reprieve from general tariffs on North American trade partners, the looming promise of Steel and Aluminum tariffs remains a critical one for Hamilton. Hamilton houses approximately 28,294 manufacturing jobs, and the Hamilton CMA is home to 42,900 people who work in Manufacturing. Data from Statistics Canada reported Hamilton’s 2023 manufacturing exports at $9.908 billion and imports at $8.511 billion.
According to Reuters, the United States is expected to implement a reciprocal tariff policy on all global trade partners, including India, South Korea, China, and the European Union, on April 2, 2025.
Therein, any tariff levelled against the United States by a trade partner would be matched by the United States.
At a local level, Mayor Andrea Horwath attended the Great Lakes and St. Lawrence Cities Initiative’s annual Great Lakes Day. There, the Mayor joined over a dozen mayors and elected officials from Ontario and Quebec to advocate for the economic and environmental health of the Great Lakes and St. Lawrence River Basin. The event provides a crucial and timely platform for mayors to engage directly with U.S. policymakers on issues impacting cross-border trade and regional prosperity.
Since the inception of the tariff threats, Mayor Horwath has also taken the following actions:
- Introducing a Buy Local, Buy Canadian Procurement Policy motion. Staff have already put forward initial recommendations for potential changes to our procurement policy, with more expected in the coming months.
- Engaging directly with major steel and manufacturing executives to assess the impacts of tariffs on local industry.
- Convening the Mayor’s Roundtable on Trade and Tariffs, bringing together 14 of Hamilton’s largest manufacturers, the Hamilton-Oshawa Port Authority, the Hamilton International Airport, City leadership, local economic development officials, and all three Hamilton-area Chambers of Commerce (Hamilton, Stoney Creek, and Flamborough) to assess impacts and discuss strategies to protect local jobs and industries.
- Working with the Federation of Canadian Municipalities (FCM) and the Association of Municipalities of Ontario Big City Mayors Caucus (OBCM)’s newly struck tariff sub-committee to ensure Hamilton’s concerns are at the forefront of all organizing and advocacy efforts.
In the meantime
Economic Development is committed to providing weekly tariff updates and sharing relevant local information on tariff responses. Economic Development staff are currently reviewing and analyzing the results of the Tariff Impact Questionnaire, with the goal of a public report in early April. We encourage all Hamilton residents to engage with trusted local and national journalism for real-time updates on trade negotiations.
Additional Insights and Resources
- For local companies looking to expand into international markets or navigate existing trade changes, please engage with the Federal Trade Commissioner Service.
- Export Development Canada has also prepared an expansive resource on United States Market Intelligence.
- RBC Economics released a deep dive on the economic impact of 25% tariffs on March 4, 2025.
- The Automotive Parts Manufacturers’ Association’s recent newsletter provided insights into the potential impacts of tariffs on the Canadian auto sector.
- And for any local business development or investment questions, the Hamilton Economic Development team is committed to supporting local growth and business prosperity.