U.S. President Donald Trump has imposed a significant tariff that poses a major trade challenge for Canada. This latest move introduces a 50 per cent duty on a wide range of Canadian goods, impacting businesses nationwide.

Analyzing the situation through three charts reveals the sectors at risk, the provinces most vulnerable, and the cross-border implications of the tariffs.

The electronics industry is poised to suffer the most significant blow, with Canada exporting over $4 billion US worth of electronics equipment subject to the new tariffs. Additionally, the plastics sector, encompassing items like bottles and household products, faces a potential impact with threatened exports valued at around $3 billion US.

The White House has issued three proclamations targeting more than 500 items, including contentious areas such as provincial alcohol restrictions, Canada’s dairy sector, and the interconnected auto industry. Notably, passenger cars and trucks are excluded from the list, while other items like motorcycles and certain components are included.

British Columbia is predicted to be disproportionately affected by these tariffs, especially due to its reliance on wood and paper exports to the U.S. Quebec is also in a precarious position, with approximately 11 per cent of its exports now under the threat of Trump’s duties, compounding the existing challenges posed by steel and aluminum tariffs.

The broader impact on Canada’s economy is significant given its heavy dependence on U.S. trade, with nearly four per cent of total exports facing a 50 per cent surcharge. Although the U.S. economy is diverse and larger, the tariffs will still have repercussions, albeit to a lesser extent. Research indicates that consumers often bear the brunt of tariff costs.

Trump’s utilization of a 1930s law to implement these tariffs, a move never seen before, underscores the gravity of the situation. Unlike past disputes, there are no exemptions for items under the Canada-United States-Mexico Agreement (CUSMA).