Canada Drops Tariffs on Most U.S. Goods: Full List of Items Affected

Canada is officially dropping most of its retaliatory tariffs on American goods, starting September 1, 2025. Prime Minister Mark Carney made the announcement Friday, calling it a strategic move to reduce trade tension between Ottawa and Washington. This comes after months of friction triggered by U.S. tariff hikes and threats against Canadian exports.

The rollback applies to goods from the U.S. that are compliant with the Canada-U.S.-Mexico Agreement (CUSMA). Items like orange juice, makeup, kitchenware, and camping gear will once again flow across the border without the extra cost.

But not everything is off the hook.

Steel, Autos, and Aluminum Still Face Tariffs

Despite this easing, Canada will maintain tariffs on American steel, aluminum, and auto imports—three sectors that remain high-stakes in the ongoing Canada-U.S. trade conversation. Carney emphasized that Ottawa is still working closely with the U.S. on a longer-term plan for these industries.

So, while Canadian shoppers might see lower prices on everyday products, big-ticket industrial sectors are still very much in the negotiation room.

What Sparked the Tariff War?

Earlier this year, Ottawa slapped 25% counter-tariffs on $60 billion worth of American goods after the U.S. threatened duties on all Canadian exports. Though the U.S. eventually scaled that back to only non-CUSMA-compliant products, it hiked the tariff to 35% on August 1.

This back-and-forth hit grocery shelves, home improvement stores, and even fashion racks. But with the latest announcement, many retailers and importers are breathing a bit easier.

Here’s What Will No Longer Face Tariffs in Canada

Canadian consumers can expect lower prices—or at least stabilized costs—on a wide range of goods, including:

Groceries and Beverages

• Poultry: chicken, turkey, eggs
• Dairy: milk, yogurt, cheese, butter
• Spices: cinnamon, pepper, ginger, nutmeg
• Produce: citrus, melons, tomatoes, berries
• Pantry goods: pasta, soup, grain products, coffee, tea
• Condiments: ketchup, mustard, mayo
• Alcohol: wine, beer, whiskey, tequila (subject to provincial sale rules)
• Orange juice
• Bottled water
• Protein powders
• Confectionery: cocoa, sugar, honey, syrups

Health, Beauty, and Toiletries

• Shampoo, toothpaste, deodorant
• Makeup, perfume
• Shaving kits, razors, aftershave
• Toilet sprays

Clothing and Accessories

• Shirts, pants, bras, babywear, sportswear
• Footwear: shoes, sandals, boots, ski boots
• Bags, hats, gloves, belts, scarves
• Jewelry (real and imitation)

Household Goods

• Kitchenware: ceramic, cast iron, aluminum
• Appliances: microwaves, stoves, coffee makers
• Furniture and bedding
• Cleaning tools: mops, brooms, brushes
• Curtains, carpets, towels
• Stationery: notebooks, folders, binders
• Toiletry and sewing travel sets

Tech and Electronics

• Cellphones
• Speakers, headphones, microphones
• Copiers, printers, data storage devices
• Video game consoles
• Camera equipment: tripods, bipods
• TVs, monitors
• LED and illuminated signage
  

Sports, Toys, and Leisure

• Skis, snowboards, golf gear, table tennis paddles
• Scooters, tricycles, doll carriages
• Fishing equipment
• Amusement park rides
• Art supplies, chalkboards
• Holiday decorations

Tools and Hardware

• Saws, drills, wrenches, hammers
• Plumbing parts, sinks, toilets
• Lawn equipment: snow blowers, lawnmowers
• Sewing needles, springs, safety pins
• Mountaineering and mining tools
• Water heaters and radiators
• Filing cabinets, padlocks, keys
• Storage tanks for gas and fluids

Transport and Auto Accessories

• Car windshields, tires
• Motorcycles
• Horse saddles and accessories
• Furniture parts for cars and homes

This list represents a sweeping range of items, touching nearly every aisle in your local big-box store—from kitchen gear to ski boots. For Toronto shoppers and business owners alike, this shift could mean more options, and possibly more savings.

What Does This Mean for Toronto?

For folks across the 6ix, this could bring lower grocery bills, better retail inventory, and more variety in imported goods. Local shops, especially those in areas like Kensington Market, may find it easier to stock U.S. brands without the added financial pressure.

It also eases some stress for small business owners who rely on U.S. imports. From Queen Street boutiques to Parkdale salons, this news lands like a breath of fresh air after months of uncertainty.

But don’t expect everything to change overnight. Prices may take time to adjust depending on how much stock retailers have under the old tariff rates.

What’s Next?

While this is a major move toward normalization, experts warn that Canada and the U.S. still need to iron out a long-term deal. Industrial sectors remain fragile, and tariffs on autos, steel, and aluminum still have ripple effects.

Still, for average consumers, this is a solid win. So the next time you grab a bottle of American whiskey or stock up on toothpaste from Buffalo, you might just notice a bit more breathing room on the price tag.

What do you think about the tariff rollback? Will it change how you shop? Let us know in the comments.

More…

• https://www.cbc.ca/news/politics/what-u-s-goods-will-no-longer-be-subject-to-canadian-tariffs-1.7615819
• https://www.reuters.com/world/americas/canada-remove-many-retaliatory-tariffs-us-carney-says-2025-08-22
• https://www.cbc.ca/news/politics/canada-removing-retaliatory-tariffs-1.7614909 
• https://www.overheretoronto.com/canada-to-remove-tariffs-on-most-us-goods