Canada announces new retaliatory tariffs. Which NC items could be impacted?
Editor’s note: This story was originally published on Tuesday, March 4. Some information may now be outdated, but some updates have been added to the timeline at the bottom of the story.
Items produced in North Carolina are among the goods subject to Canada’s 25% retaliatory tariffs.
Tariffs are taxes applied by governments on imported goods, according to the International Trade Administration.
Canada announced retaliatory tariffs in response to President Trump’s plan to impose a 25% tariff on Canadian goods, first announced in early February. Those tariffs were initially put on hold after Canada’s government said it would take steps to increase border security.
“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Canadian Prime Minister Justin Trudeau said in a statement on Monday.
“Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs,” he added.
Both tariffs went into effect just after midnight on Tuesday, March 4, escalating the trade war that has rattled governments and international relations, The New York Times reported.
Tariffs on the remaining $125 billion of products will come into effect in 21 days, Trudeau said in a statement on Monday.
Here are items produced in North Carolina that are on Canada’s retaliatory tariff list.
North Carolina items on Canada’s retaliatory tariffs list
Here are some NC products that might be affected by Canada’s retaliatory tariffs if or when they are resumed:
- Motor vehicle and aircraft parts
- Compressors and pumps
- Iron and steel alloys
- Produce
- Nuts
- Baked goods
- Poultry
- Sausages and other preserved meats
- Furniture
- Plastics
- Textiles
Read the full list of items at canada.ca/en/department-finance/news.
Which NC industries could be affected by retaliatory tariffs?
In 2023, North Carolina exported $7.7 billion in goods to Canada and $5.8 billion to China, according to the Office of the U.S. Trade Representative.
Any North Carolina-produced goods that fall under the categories included in Canada and China’s tariff lists would be taxed.
Canada said it would place tariffs on many agricultural products including:
- Chicken and turkey meat
- Tobacco, cigarettes and cigars
- Peanuts
These products generate some of the highest income streams among North Carolina’s farms, according to a 2023 report from the North Carolina Department of Agriculture. The state exported nearly $400 million worth of agricultural products to Canada alone in 2023, according to Canada’s Department of Agriculture.
Many types of furniture, also on Canada’s tariffs list, are produced in North Carolina, which is home to the world’s largest furniture trade show. Ashley Furniture has a manufacturing and distribution facility in Advance in Davie County, and Kincaid Furniture was founded in North Carolina in 1946.
Motor vehicle parts, including tires, are subject to Canada’s tariffs. Bridgestone’s facility in Wilson, for example, manufactures passenger and light truck tires.
Tariffs timeline between the U.S. and Canada
- Feb 1: President Trump issues an executive order announcing 25% tariffs on Canada and Mexico and an additional 10% tariff on China.
- Feb. 1: Canada announces retaliatory tariffs targeting U.S. exports, including agricultural and automotive products.
- Feb. 3: Leaders from Canada and Mexico announce that tariffs are on hold while the countries address border security and drug trafficking issues.
- Feb. 4: U.S. tariffs on China go into effect.
- Feb. 4: China announces retaliatory tariffs on U.S. exports, including coal, natural gas a crude oil.
- March 3: President Trump confirms that 25% tariffs on Canada and Mexico will go into effect March 4, as well as an additional 10% tariff on Chinese imports.
- March 4: U.S. tariffs on Canada, Mexico and China go into effect. Canada’s retaliatory tariffs go into effect.
- March 12: The Trump administration imposed new tariffs on steel and aluminum imports from Canada and the European Union.
- March 13: Canada announced a new 25% reciprocal tariff on nearly $30 billion worth of additional American imports.
This story was originally published March 4, 2025 at 8:30 AM with the headline "Canada announces new retaliatory tariffs. Which NC items could be impacted?."
