Georgia Chamber Foundation Releases New Briefing on U.S.-Canada Trade Escalation

ATLANTA – The Georgia Chamber Foundation today released a new briefing examining the potential impact of escalating U.S.-Canada tariffs on Georgia businesses, highlighting significant risks for the state’s exporters, manufacturers and industries that rely on Canadian goods and inputs.

The briefing comes as new U.S. tariffs on a range of Canadian products took effect Aug. 22, including an additional 50% duty on certain Canadian goods. Canada has announced retaliatory tariffs on $20 billion in U.S. goods beginning Sept. 8.

Daniela Perry, Executive Director, Georgia Chamber Foundation, said:

“Through evolving trade and tariff policies, Georgia businesses have remained resilient. Canada is Georgia's largest export market and 4th largest trading partner. We encourage trade negotiations to re-start enabling utilization of existing free trade agreements as well as exploring opportunities to expand these agreements reducing costs, providing predictability, and deepening prosperity for Georgians and Georgian businesses."

Canada was Georgia’s largest export market in 2025, receiving $6.8 billion in Georgia goods exports, or approximately 11% of the state’s total goods exports. Canada was also Georgia’s fourth-largest total trade partner, accounting for $13.3 billion in two-way goods trade last year.

Canada's response is expected to affect approximately 700 U.S. tariff categories, including steel and aluminum, dairy, agricultural equipment, pulp and paper, electronics, machinery, clothing, furniture, fish, and other foods. For many American products, the tariff would double, with the largest share of the new measures affecting steel and aluminum. These higher input costs will continue to create challenges for consumers and businesses.

The new U.S. tariffs also extend across a wide range of industries, including:

• Construction, housing, forest products, and packaging

• Chemicals, plastics, and rubber

• Machinery, electronics, telecommunications, and tools

• Food, agriculture, horticulture, and alcoholic beverages

• Dairy, sweeteners, and food-processing inputs

• Textiles, consumer goods, and recreation

While continuing to monitor developments in U.S.-Canada trade and their implications for Georgia's business community, the Georgia Chamber Foundation encourages Georgia businesses engaged in trade with Canada to review the tariff classifications and rates applicable to their products and shipments and prepare for continued changes as negotiations potentially resume.

To read the full Georgia Chamber Foundation tariff briefing, click here.

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Founded in 1911 and incorporated in 1915, the Georgia Chamber of Commerce is the largest business advocacy organization in Georgia, working to protect free enterprise and secure our long-term economic prosperity. The Georgia Chamber represents tens of thousands of members in every corner of the state, with offices in Atlanta, Brunswick, and Tifton. In 2025 the Georgia Chamber launched Georgia|2050, a strategic plan to ensure Georgia remains a beacon of economic opportunity for the next 25 years. For more information visit gachamber.com.