As the United States increases tariffs on Canadian goods to 35%, trade negotiations between the two countries remain opaque. Speaking with CTV News in early August, Wendy Wagner, head of international trade and customs and a partner at Gowling WLG, shared her insights on both the immediate implications of the tariff hike and the broader diplomatic landscape.

Wendy explained that while a number of goods qualify for exemptions under existing agreements, the tariff increase still hits a significant portion of Canadian exports:

"There are a large number of goods that are exempt from the tariffs because they qualify under the CUSMA agreement—but it still leaves a significant percentage of goods that are subject to the 35% tariff, which just went up by 10%."

She also noted the lack of transparency in the current trade talks:

"We don't have much transparency into the ongoing negotiations—but based on agreements with the EU and Japan, it's possible that Canada is facing asks around military investment or defence-related purchases."

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About Gowling WLG's International Trade & Customs Group

With deep experience in Canadian and international trade law, Gowling WLG's International Trade & Customs Group helps businesses navigate complex regulatory environments and global market shifts. From tariffs and trade remedies to import/export controls and cross-border compliance, we deliver practical advice that supports business goals while mitigating risk. Learn more about Gowling WLG's International Trade & Customs Group.