The Tariff Cost: analysis of the costs to Americans from new tariffs on Canada

In 2025 the U.S. imposed a 25% tariff on imported aluminum, later raised to 50%, aiming to boost domestic production. The duty is levied only on foreign metal, but higher foreign prices cause U.S. producers to raise their own prices, passing costs to importers and ultimately to households. The tariff also impacts U.S. exporters—primarily steel and aluminum—by adding a 25% duty on Canadian goods, while Canada’s energy sales to the U.S. remain unaffected.