Here’s where Canada’s effective U.S. tariff rate might stand amid carve outs
Aug 12, 2025 | 9:51 AM
OTTAWA — Amid the many layers of tariffs and exemptions from the United States, some economists say the effective tariff rate on Canada is much lower than the headline figures suggest.
RBC senior economist Claire Fan says the effective tariff rate is an average of the import duties paid on goods heading to the United States that accounts for exemptions tied to the Canada-U.S.-Mexico Agreement.
While U.S. President Donald Trump ramped up blanket tariffs on Canada to 35 per cent at the start of the month, that move maintained an exemption for goods compliant with that trade pact.
RBC estimates the effective tariff rate on Canadian goods is closer to six per cent today.
