Proposed tariffs to be paused for a month
Feb. 05, 2025
Global Korean Post
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Tariffs can impact the prices you pay at the store. When the cost of importing goods increases, businesses pass the bulk of this cost onto consumers.
Canada and the United States have the world’s most comprehensive and dynamic trading relationship, which supports millions of jobs in each country. Each day, US$2.5 billion in goods and services cross the Canada-U.S. border. This amounts to nearly US$1 trillion per year. The significant trade volume shows how deeply the two economies are integrated, with many goods moving back and forth as part of co-investing and co-development projects.
In addition to trade, Canada and the U.S. have a significant investment relationship. The U.S. is the single greatest investor in Canada and at the end of 2023, Canada was the largest source of foreign direct investment in the U.S. And Canada is the single largest foreign supplier of energy to the U.S.
For the better part of four decades, trade between Canada and the U.S. has been governed by a succession of free trade agreements. The Canada-U.S. Free Trade Agreement (CUSFTA), implemented in 1989, was the first of its kind, followed by the North American Free Trade Agreement (NAFTA) in 1994, which added Mexico. The most recent evolution of this agreement is the Canada-U.S.-Mexico Agreement (CUSMA), which entered into force in July 2020 which balances trade relationships across the North American continent and facilitates trade across all sections of the economies.
Canada’s 15 free trade agreements provide Canadians with tariff-free access to nearly all products traded between Canada and its free-trade partners.
