Here's what Canada's effective U.S. tariff rate might look like after the carve

OTTAWA — When you peel back the many layers of tariffs and exemptions imposed by the United States, the effective tariff rate on Canada looks much lower than the headline figures suggest, some economists say.

RBC senior economist Claire Fan said in an interview that the effective tariff rate is an average of the import duties paid on goods heading to the United States that accounts for exemptions tied to the Canada-U.S.-Mexico Agreement on trade, or CUSMA.

While U.S. President Donald Trump ramped up blanket tariffs on Canada to 35 per cent at the start of the month, that move maintained an exemption for goods compliant with the CUSMA pact.

RBC estimates the effective tariff rate on Canadian goods is closer to six per cent today. BMO’s calculations from the start of the month place that