Adapting to Trump administration trade policies with Practical Law Canada

The first days of the 2025 Trump administration have brought significant legal and regulatory changes that threaten to deeply impact Canadian manufacturers, importers, exporters, and other businesses. These developments, including the imposition of tariffs and shifts in enforcement priorities, necessitate a strategic reassessment of commercial contracts and supply chains. Canadian legal advisors, both in-house and external, can help their clients navigate these challenges using the resources provided by Practical Law Canada. 

Key legal and regulatory developments 

During the first few weeks of the Trump administration, several key legal and regulatory changes have affected Canadian businesses. Notably, tariffs have been imposed on imports from Canada under the International Emergency Economic Powers Act, although these tariffs were initially suspended until March 4, 2025. U.S. Attorney General Pam Bondi has also redirected the Department of Justice's Foreign Corrupt Practices Act enforcement to focus on drug cartels and transnational criminal organizations.

Implications for commercial contracts and supply chains 

The America First Trade Policy and the new tariffs on Canada have significant implications for commercial contracts and supply chains. Canadian entities may face increased costs for goods and materials, necessitating changes in supply chain logistics and the renegotiation of contract terms to address new trade barriers. The policy may also lead to a review of antidumping and countervailing duty laws, further impacting the cost and availability of imported goods. To mitigate these impacts, businesses should consider qualifying for preferential treatment under the United States-Mexico-Canada Agreement (USMCA) and actively engage in public consultation. 

Qualifying for USMCA preferential treatment 

The America First Trade Policy Memorandum has directed the U.S. Trade Representative to commence the public consultation process regarding the USMCA in preparation for the July 2026 review. This process could result in changes to the agreement or its implementation, potentially affecting Canadian entities' ability to qualify for USMCA preferential treatment. Canadian firms should closely monitor these developments and actively participate in the consultation process to ensure their interests are represented. 

2025 Trump Administration Transition Toolkit: The First 100 Days 

Practical Law Canada has developed a 2025 Trump Administration Transition Toolkit to assist Canadian firms in navigating the evolving trade landscape. This continually updated toolkit, freely available to all Canadian legal professionals, includes immediate guidance across more than a dozen areas of practice, including commercial transactions, finance and banking, and labor, employment, and immigration. The toolkit also links to dozens of authoritative, regularly updated Practical Law resources from the U.S., Canada, and other affected jurisdictions. These resources include: 

• Legal updates. Tariffs ensure businesses and their legal advisors can stay informed about changes that could affect their operations. 
• Practice notes. Receive detailed guidance on international trade, customs, and import regulations, helping firms understand the legal and regulatory environment in different jurisdictions. 
• Checklists. Use these to ensure compliance with import and export regulations, preventing delays and penalties when entering new markets. 
• Global content. Review jurisdiction-specific overviews and quick compare charts, helping firms identify and enter new markets. 
• What's Market. Check analysis of public documents and market trends to understand best practices and how other companies are adapting to the changing trade landscape. 
• International trade and customs toolkit. See insights into World Trade Organization (WTO) rules, free trade agreements, and trade remedies, informing strategic decisions about diversifying trade beyond the U.S. 

The Practical Law Canada difference 

Practical Law is not just a folder of documents — it’s the combined global expertise of over 650 experienced lawyers, writing in their areas of practice to create trusted guidance, forms, and tools to help their peers work smarter, faster, and with more confidence. Practical Law legal editors use a rigorous editorial process to create thousands of useful resources across all major practice areas. Written in plain English, our legal editors create the resources they wish they’d had in practice. They also track, in real time, changes in the law and market practice. This practice is especially useful during rapid change — like the early Trump administration — to ensure those resources remain current.

Strategic adaptation using Practical Law Canada 

Canadian firms can adapt to the Trump Administration's trade policies by leveraging Practical Law Canada's resources in the following ways: 

• Stay informed. Regularly access legal updates to stay current on trade policies and tariffs. 
• Use compliance checklists. Use checklists to ensure Canadian companies maintain compliance with changing US import and export regulations, reducing the risk of penalties and delays. 
• Diversify trade strategies. Utilize Canadian practice notes and global content to identify new markets and understand the regulatory requirements in different jurisdictions. 
• Engage in consultation. Actively participate in the public consultation process to influence the review and implementation of the USMCA. 
• Utilize strategic toolkits. Leverage toolkits and practice notes that cover specific issues, such as tariffs and trade remedies, to help your clients make informed strategic decisions. 

Navigating the evolving trade landscape 

The Trump administration's trade policies present challenges and opportunities for Canadian firms. By staying informed, ensuring compliance, and diversifying trade strategies, Canadian businesses can navigate the evolving trade landscape effectively. Their legal advisors must also focus on providing those insights quickly and relevantly. Practical Law Canada's comprehensive resources provide the necessary tools and information to help Canadian organizations adapt and thrive in this dynamic environment.