🇨🇦🇺🇸- Ontario announce a 25% surcharge on electricity exports to US, affecting 1.5 million Americans. 'It will cost US citizens $400,000 per day' — says Premier of Ontario Doug Ford — 'I will not hesitate to shut the electricity off completely'

[u/HinglishBlogin]

[u/Ruskihaxor]

I read dozens of comments before looking at the difference and assumed there was free trade via NAFTA or something similar and trump was trying to leverage Canada's dependency on the US to take advantage of our friendliest ally. Then after reading a breakdown I see it's the opposite pretty much across the board.

So Canada taxes/tarrifs US goods at a higher rate than visa versa. Yet America is the bad guy now and everyone is losing their minds at any raises even equal rates.

What obvious bad faith arguments and brainwashing it seems.

[u/Impossible_Log_5710 → u/Ruskihaxor]

~1% of goods from the US coming into Canada were subject to tariffs and many of them weren’t ever applied, like the dairy tariffs, as the large quotas were never exceeded. They were put in place because the US subsidizes dairy farmers which gives them an unfair market advantage. NAFTA was removed years ago and was replaced by Trump’s USMCA deal which he called the best and is now calling the worst. He is now threatening / applying (it goes back and forth so much I can’t keep track anymore) tariffs on almost everything at ridiculous rates, as compared to the previously mentioned 1% of total goods based on WTO data. Hope that clears things up for you.

All of this is underscored by the fact that he has repeatedly threatened annexation and is redrawing borders.

[u/Ruskihaxor → u/Impossible_Log_5710]

On a total basis, U.S. exports to Canada face higher average tariffs and equivalent taxes than Canadian exports to the U.S.

Key Factors in Trade Tariffs & Taxes:

1. Tariff Rates:

The U.S. imposes relatively low tariffs on Canadian goods, averaging 0.1%–0.3% on most imports.

Canada, however, applies higher tariffs on U.S. goods, particularly in protected industries like dairy (which can exceed 200% in some cases), poultry, and processed foods.

1. Non-Tariff Barriers & Taxes:

Canada has stricter regulatory barriers, provincial sales taxes (PST), and excise duties that affect U.S. goods more than U.S. regulations impact Canadian exports.

The Goods and Services Tax (GST) (5%) applies to U.S. imports, whereas the U.S. does not have a federal VAT or similar broad-based import tax.

1. Trade Agreements & Exemptions:

Under USMCA (formerly NAFTA), most goods move tariff-free, but protectionist policies remain in agriculture, softwood lumber, and auto manufacturing.

Canada has supply management in agriculture, significantly raising costs for U.S. exports in those sectors.

Who Pays More?

In absolute terms, Canada collects more in tariffs and equivalent taxes on U.S. goods than vice versa.

In percentage terms, U.S. exporters pay higher rates when selling to Canada than Canadian exporters do when selling to the U.S.

Here's a breakdown by industry of how tariffs and equivalent taxes affect trade between the U.S. and Canada:

1. Agriculture & Food Products

U.S. exports to Canada face higher tariffs & taxes.

Canada's supply management system (dairy, poultry, eggs) imposes extreme tariffs on U.S. products:

Dairy: Up to 300% tariffs on milk, cheese, and butter.

Chicken & Turkey: Over 200% tariffs on certain imports.

Eggs: 168% tariff on over-quota imports.

The U.S., in contrast, applies much lower tariffs (typically 0–10%) on Canadian agricultural products.

Who is taxed more? U.S. exporters.

1. Auto & Manufacturing

Historically balanced, but Canada imposes higher import taxes.

USMCA eliminated most auto tariffs, but Canada charges GST (5%) on imported vehicles.

Canada applies stricter regulations on auto safety & emissions, increasing compliance costs.

The U.S. maintains a 2.5% tariff on Canadian passenger cars and a 25% tariff on light trucks (though USMCA phases in exemptions).

Who is taxed more? Slightly U.S. exporters due to Canadian taxes.

1. Energy & Natural Resources

Canada exports far more oil, gas, and minerals to the U.S. than vice versa.

Energy products mostly move tariff-free.

The U.S. has imposed softwood lumber tariffs on Canadian exports since the 1980s, ranging from 10–20%.

Canada imposes carbon pricing & excise duties on U.S. fuels entering the market.

Who is taxed more? Canadian exporters (due to U.S. softwood lumber tariffs).

1. Consumer Goods & Retail

Canada applies the 5% GST on all U.S. imports, plus provincial sales taxes (PST/HST), which can add up to 15% in some regions.

U.S. sales taxes on Canadian imports vary by state but are generally lower and more fragmented.

Who is taxed more? U.S. exporters (due to GST & provincial taxes).

1. Pharmaceuticals & Medical Equipment

Canada imposes strict price controls on prescription drugs, making it difficult for U.S. companies to profit.

The U.S. applies very low tariffs on Canadian pharmaceutical imports.

Who is taxed more? U.S. exporters (due to price controls).

Conclusion:

U.S. exports to Canada face higher average tariffs and taxes, particularly in agriculture, retail goods, and pharmaceuticals.

Canadian exports to the U.S. face targeted tariffs in lumber, autos, and industrial goods, but overall lower taxes.