According to estimates, if President Trump's proposed tariffs go into effect permanently, the United States' GDP would decrease by 0.4 percent. Of this, 0.3 percent would be from the 25 percent tariff on all imports from Canada and Mexico, while 0.1 percent would be from the 10 percent tariff on all imports from China. As of February 10, China imposed retaliatory tariffs on the United States, with a 15 percent tariff on coal and liquid natural gas, and a 10 percent tariff on other exports, including oil, machinery, and large motor vehicles.

Canada CA: Tariff Rate: Most Favored Nation: Simple Mean: All Products data was reported at 3.040 % in 2022. This records a decrease from the previous number of 3.160 % for 2021. Canada CA: Tariff Rate: Most Favored Nation: Simple Mean: All Products data is updated yearly, averaging 4.650 % from Dec 1989 (Median) to 2022, with 30 observations. The data reached an all-time high of 9.530 % in 1995 and a record low of 3.040 % in 2022. Canada CA: Tariff Rate: Most Favored Nation: Simple Mean: All Products data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Trade Tariffs. Simple mean most favored nation tariff rate is the unweighted average of most favored nation rates for all products subject to tariffs calculated for all traded goods. Data are classified using the Harmonized System of trade at the six- or eight-digit level. Tariff line data were matched to Standard International Trade Classification (SITC) revision 3 codes to define commodity groups.;World Bank staff estimates using the World Integrated Trade Solution system, based on data from United Nations Conference on Trade and Development's Trade Analysis and Information System (TRAINS) database.;;The tariff data for the European Union (EU) apply to EU Member States in alignment with the EU membership for the respective countries/economies and years. In the context of the tariff data, the EU membership for a given country/economy and year is defined for the entire year during which the country/economy was a member of the EU (irrespective of the date of accession to or withdrawal from the EU within a given year). The tariff data for the EU are, thus, applicable to Belgium, France, Germany, Italy, Luxembourg, and the Netherlands (EU Member State(s) since 1958), Denmark and Ireland (EU Member State(s) since 1973), the United Kingdom (EU Member State(s) from 1973 until 2020), Greece (EU Member State(s) since 1981), Spain and Portugal (EU Member State(s) since 1986), Austria, Finland, and Sweden (EU Member State(s) since 1995), Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovakia, and Slovenia (EU Member State(s) since 2004), Romania and Bulgaria (EU Member State(s) since 2007), Croatia (EU Member State(s) since 2013). For more information, please revisit the technical note on bilateral applied tariff (https://wits.worldbank.org/Bilateral-Tariff-Technical-Note.html).

Canada tariff rates for 2022 was 1.37%, a 0.98% decline from 2021.

<ul style='margin-top:20px;'>

<li>Canada tariff rates for 2021 was <strong>2.35%</strong>, a <strong>0.86% increase</strong> from 2020.</li>
<li>Canada tariff rates for 2020 was <strong>1.49%</strong>, a <strong>0.02% decline</strong> from 2019.</li>
<li>Canada tariff rates for 2019 was <strong>1.51%</strong>, a <strong>0.04% increase</strong> from 2018.</li>
</ul>Weighted mean applied tariff is the average of effectively applied rates weighted by the product import shares corresponding to each partner country. Data are classified using the Harmonized System of trade at the six- or eight-digit level. Tariff line data were matched to Standard International Trade Classification (SITC) revision 3 codes to define commodity groups and import weights. To the extent possible, specific rates have been converted to their ad valorem equivalent rates and have been included in the calculation of weighted mean tariffs. Import weights were calculated using the United Nations Statistics Division's Commodity Trade (Comtrade) database. Effectively applied tariff rates at the six- and eight-digit product level are averaged for products in each commodity group. When the effectively applied rate is unavailable, the most favored nation rate is used instead.

Canada CA: Share of Tariff Lines with Specific Rates: All Products data was reported at 0.187 % in 2022. This records a decrease from the previous number of 0.190 % for 2021. Canada CA: Share of Tariff Lines with Specific Rates: All Products data is updated yearly, averaging 0.180 % from Dec 1989 (Median) to 2022, with 30 observations. The data reached an all-time high of 3.356 % in 1993 and a record low of 0.000 % in 2014. Canada CA: Share of Tariff Lines with Specific Rates: All Products data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Trade Tariffs. Share of tariff lines with specific rates is the share of lines in the tariff schedule that are set on a per unit basis or that combine ad valorem and per unit rates. It shows the extent to which countries use tariffs based on physical quantities or other, non-ad valorem measures.;World Bank staff estimates using the World Integrated Trade Solution system, based on data from United Nations Conference on Trade and Development's Trade Analysis and Information System (TRAINS) database.;;The tariff data for the European Union (EU) apply to EU Member States in alignment with the EU membership for the respective countries/economies and years. In the context of the tariff data, the EU membership for a given country/economy and year is defined for the entire year during which the country/economy was a member of the EU (irrespective of the date of accession to or withdrawal from the EU within a given year). The tariff data for the EU are, thus, applicable to Belgium, France, Germany, Italy, Luxembourg, and the Netherlands (EU Member State(s) since 1958), Denmark and Ireland (EU Member State(s) since 1973), the United Kingdom (EU Member State(s) from 1973 until 2020), Greece (EU Member State(s) since 1981), Spain and Portugal (EU Member State(s) since 1986), Austria, Finland, and Sweden (EU Member State(s) since 1995), Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovakia, and Slovenia (EU Member State(s) since 2004), Romania and Bulgaria (EU Member State(s) since 2007), Croatia (EU Member State(s) since 2013). For more information, please revisit the technical note on bilateral applied tariff (https://wits.worldbank.org/Bilateral-Tariff-Technical-Note.html).

Canada CA: Tariff Rate: Most Favored Nation: Weighted Mean: Primary Products data was reported at 5.370 % in 2022. This records a decrease from the previous number of 5.470 % for 2021. Canada CA: Tariff Rate: Most Favored Nation: Weighted Mean: Primary Products data is updated yearly, averaging 5.380 % from Dec 1989 (Median) to 2022, with 30 observations. The data reached an all-time high of 19.750 % in 2003 and a record low of 3.260 % in 1993. Canada CA: Tariff Rate: Most Favored Nation: Weighted Mean: Primary Products data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Trade Tariffs. Weighted mean most favored nations tariff is the average of most favored nation rates weighted by the product import shares corresponding to each partner country. Data are classified using the Harmonized System of trade at the six- or eight-digit level. Tariff line data were matched to Standard International Trade Classification (SITC) revision 3 codes to define commodity groups and import weights. Import weights were calculated using the United Nations Statistics Division's Commodity Trade (Comtrade) database. Primary products are commodities classified in SITC revision 3 sections 0-4 plus division 68 (nonferrous metals).;World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade and Development's Trade Analysis and Information System (TRAINS) database and global imports data from the United Nations Statistics Division's Comtrade database.;;The tariff data for the European Union (EU) apply to EU Member States in alignment with the EU membership for the respective countries/economies and years. In the context of the tariff data, the EU membership for a given country/economy and year is defined for the entire year during which the country/economy was a member of the EU (irrespective of the date of accession to or withdrawal from the EU within a given year). The tariff data for the EU are, thus, applicable to Belgium, France, Germany, Italy, Luxembourg, and the Netherlands (EU Member State(s) since 1958), Denmark and Ireland (EU Member State(s) since 1973), the United Kingdom (EU Member State(s) from 1973 until 2020), Greece (EU Member State(s) since 1981), Spain and Portugal (EU Member State(s) since 1986), Austria, Finland, and Sweden (EU Member State(s) since 1995), Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovakia, and Slovenia (EU Member State(s) since 2004), Romania and Bulgaria (EU Member State(s) since 2007), Croatia (EU Member State(s) since 2013). For more information, please revisit the technical note on bilateral applied tariff (https://wits.worldbank.org/Bilateral-Tariff-Technical-Note.html).

Canada CA: Tariff Rate: Applied: Simple Mean: Primary Products data was reported at 3.480 % in 2022. This records a decrease from the previous number of 3.880 % for 2021. Canada CA: Tariff Rate: Applied: Simple Mean: Primary Products data is updated yearly, averaging 4.985 % from Dec 1989 (Median) to 2022, with 30 observations. The data reached an all-time high of 17.410 % in 2003 and a record low of 3.480 % in 2022. Canada CA: Tariff Rate: Applied: Simple Mean: Primary Products data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Trade Tariffs. Simple mean applied tariff is the unweighted average of effectively applied rates for all products subject to tariffs calculated for all traded goods. Data are classified using the Harmonized System of trade at the six- or eight-digit level. Tariff line data were matched to Standard International Trade Classification (SITC) revision 3 codes to define commodity groups. Effectively applied tariff rates at the six- and eight-digit product level are averaged for products in each commodity group. When the effectively applied rate is unavailable, the most favored nation rate is used instead. To the extent possible, specific rates have been converted to their ad valorem equivalent rates and have been included in the calculation of simple mean tariffs. Primary products are commodities classified in SITC revision 3 sections 0-4 plus division 68 (nonferrous metals).;World Bank staff estimates using the World Integrated Trade Solution system, based on data from United Nations Conference on Trade and Development's Trade Analysis and Information System (TRAINS) database.;;The tariff data for the European Union (EU) apply to EU Member States in alignment with the EU membership for the respective countries/economies and years. In the context of the tariff data, the EU membership for a given country/economy and year is defined for the entire year during which the country/economy was a member of the EU (irrespective of the date of accession to or withdrawal from the EU within a given year). The tariff data for the EU are, thus, applicable to Belgium, France, Germany, Italy, Luxembourg, and the Netherlands (EU Member State(s) since 1958), Denmark and Ireland (EU Member State(s) since 1973), the United Kingdom (EU Member State(s) from 1973 until 2020), Greece (EU Member State(s) since 1981), Spain and Portugal (EU Member State(s) since 1986), Austria, Finland, and Sweden (EU Member State(s) since 1995), Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovakia, and Slovenia (EU Member State(s) since 2004), Romania and Bulgaria (EU Member State(s) since 2007), Croatia (EU Member State(s) since 2013). For more information, please revisit the technical note on bilateral applied tariff (https://wits.worldbank.org/Bilateral-Tariff-Technical-Note.html).

As of March 26, 2025, the 25 percent tariffs on U.S. automotive imports were forecast to impact exports from the United States the most. The country is projected to record a short-run decrease of nearly three percent of its total exports as a result of the policy. Mexico and Canada, where large U.S. automakers outsource part of their production, were projected to be the second and third countries most affected among those analyzed.

Canada CA: Tariff Rate: Applied: Weighted Mean: All Products data was reported at 1.370 % in 2022. This records a decrease from the previous number of 2.350 % for 2021. Canada CA: Tariff Rate: Applied: Weighted Mean: All Products data is updated yearly, averaging 1.510 % from Dec 1989 (Median) to 2022, with 30 observations. The data reached an all-time high of 7.020 % in 1989 and a record low of 1.010 % in 1999. Canada CA: Tariff Rate: Applied: Weighted Mean: All Products data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Trade Tariffs. Weighted mean applied tariff is the average of effectively applied rates weighted by the product import shares corresponding to each partner country. Data are classified using the Harmonized System of trade at the six- or eight-digit level. Tariff line data were matched to Standard International Trade Classification (SITC) revision 3 codes to define commodity groups and import weights. To the extent possible, specific rates have been converted to their ad valorem equivalent rates and have been included in the calculation of weighted mean tariffs. Import weights were calculated using the United Nations Statistics Division's Commodity Trade (Comtrade) database. Effectively applied tariff rates at the six- and eight-digit product level are averaged for products in each commodity group. When the effectively applied rate is unavailable, the most favored nation rate is used instead.;World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade and Development's Trade Analysis and Information System (TRAINS) database and global imports data from the United Nations Statistics Division's Comtrade database.;;The tariff data for the European Union (EU) apply to EU Member States in alignment with the EU membership for the respective countries/economies and years. In the context of the tariff data, the EU membership for a given country/economy and year is defined for the entire year during which the country/economy was a member of the EU (irrespective of the date of accession to or withdrawal from the EU within a given year). The tariff data for the EU are, thus, applicable to Belgium, France, Germany, Italy, Luxembourg, and the Netherlands (EU Member State(s) since 1958), Denmark and Ireland (EU Member State(s) since 1973), the United Kingdom (EU Member State(s) from 1973 until 2020), Greece (EU Member State(s) since 1981), Spain and Portugal (EU Member State(s) since 1986), Austria, Finland, and Sweden (EU Member State(s) since 1995), Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovakia, and Slovenia (EU Member State(s) since 2004), Romania and Bulgaria (EU Member State(s) since 2007), Croatia (EU Member State(s) since 2013). For more information, please revisit the technical note on bilateral applied tariff (https://wits.worldbank.org/Bilateral-Tariff-Technical-Note.html).

If proposed tariffs of 25 percent on goods imported into the United States from Mexico and Canada were put into effect, tax revenue would be impacted. Tax revenue from Mexican wine imports are projected to increase by 108 million U.S. dollars while taxes from Mexican spirits imports would decrease by 1.4 billion dollars.

According to new estimations, if the 2025 tariffs were to remain in place, Canada would suffer the most significant long-term shock, with estimates showing a **** percent point drop in their real GDP.

Canada CA: Share of Tariff Lines with International Peaks: All Products data was reported at 5.183 % in 2022. This records a decrease from the previous number of 5.658 % for 2021. Canada CA: Share of Tariff Lines with International Peaks: All Products data is updated yearly, averaging 7.857 % from Dec 1989 (Median) to 2022, with 30 observations. The data reached an all-time high of 14.920 % in 1989 and a record low of 5.120 % in 2019. Canada CA: Share of Tariff Lines with International Peaks: All Products data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Trade Tariffs. Share of tariff lines with international peaks is the share of lines in the tariff schedule with tariff rates that exceed 15 percent. It provides an indication of how selectively tariffs are applied.;World Bank staff estimates using the World Integrated Trade Solution system, based on data from United Nations Conference on Trade and Development's Trade Analysis and Information System (TRAINS) database.;;The tariff data for the European Union (EU) apply to EU Member States in alignment with the EU membership for the respective countries/economies and years. In the context of the tariff data, the EU membership for a given country/economy and year is defined for the entire year during which the country/economy was a member of the EU (irrespective of the date of accession to or withdrawal from the EU within a given year). The tariff data for the EU are, thus, applicable to Belgium, France, Germany, Italy, Luxembourg, and the Netherlands (EU Member State(s) since 1958), Denmark and Ireland (EU Member State(s) since 1973), the United Kingdom (EU Member State(s) from 1973 until 2020), Greece (EU Member State(s) since 1981), Spain and Portugal (EU Member State(s) since 1986), Austria, Finland, and Sweden (EU Member State(s) since 1995), Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovakia, and Slovenia (EU Member State(s) since 2004), Romania and Bulgaria (EU Member State(s) since 2007), Croatia (EU Member State(s) since 2013). For more information, please revisit the technical note on bilateral applied tariff (https://wits.worldbank.org/Bilateral-Tariff-Technical-Note.html).

The Canadian customs clearance market, valued at approximately $2.5 billion in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) exceeding 7% from 2025 to 2033. This significant expansion is fueled by several key factors. The increasing volume of cross-border trade between Canada and its major trading partners, particularly the United States, is a primary driver. E-commerce's continued surge is also a significant contributor, leading to a higher demand for efficient and reliable customs clearance services. Furthermore, the Canadian government's ongoing efforts to streamline customs processes and enhance technological infrastructure are fostering a more conducive environment for market growth. The market's segmentation by mode of transport – sea, air, and cross-border land transport – reflects the diverse nature of import and export activities within Canada. Major players like DHL, FedEx, UPS, and Kuehne + Nagel dominate the market, leveraging their established global networks and technological capabilities. However, the market also presents opportunities for smaller, specialized firms catering to niche sectors or specific regional needs. The projected growth trajectory of the Canadian customs clearance market is anticipated to continue its upward trend throughout the forecast period. While potential restraints such as fluctuating exchange rates and evolving trade policies could impact market dynamics, the underlying growth drivers – increasing trade volumes, e-commerce expansion, and government initiatives – are expected to outweigh these challenges. The robust growth signifies significant opportunities for market participants, particularly those capable of offering innovative solutions, advanced technologies, and specialized expertise to navigate the complexities of Canadian customs regulations. Further market consolidation through mergers and acquisitions is also a likely scenario, leading to an increasingly competitive landscape dominated by a smaller number of large players and specialized niche firms. Recent developments include: March 2023: Air Menzies International (AMI), a Canadian airfreight reseller, has built a new branch near Toronto Pearson International Airport. The new branch is AMI's second in Canada, and it will provide a wide range of wholesale airfreight services, including door-to-door services on global import and export shipments; exports with consolidation and 'Back2Back'; 'Quick2Ship,' AMI's express shipment platform; X-ray screening and warehousing services; and customs clearance and documentation support., March 2022: The Department of Finance Canada announced that they issued the Most-Favoured-Nation Tariff Withdrawal Order (2022-1) to remove Russia and Belarus from entitlement to the Most-Favoured-Nation (MFN) tariff, under the Customs Tariff of Canada. This was in response to the Russian Invasion of Ukraine, supported by Belarus, and in addition to the new sanctions Canada has imposed under the Special Economic Measures Act. Effective March 2, 2022, the General Tariff will be used to account for goods imported into Canada that originate from Russia and Belarus, with the Canada Border Services Agency (CBSA). Under the General Tariff, a customs duty rate of 35% is applicable on almost all goods. Russia, Belarus, and North Korea are the only countries whose imports are currently subject to the General Tariff.. Notable trends are: Increasing International Trade Driving the Market.

The Canadian customs clearance market, valued at approximately $X million in 2025 (estimated based on provided CAGR and market size data), is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 7% from 2025 to 2033. This expansion is fueled by several key factors. The surge in e-commerce, particularly cross-border transactions, is driving significant demand for efficient customs brokerage services. Furthermore, increasingly complex trade regulations and a greater focus on supply chain security are compelling businesses to outsource customs clearance to specialized firms. The market's segmentation reflects diverse transportation modes, with sea, air, and cross-border land transport all contributing to the overall market volume. Major players like DB Schenker, UPS, Kuehne + Nagel, FedEx, and DHL Group Logistics dominate the landscape, competing on service offerings, technological capabilities, and network reach. However, smaller, specialized firms focusing on niche sectors or regional expertise also play a vital role. The Canadian market's growth trajectory is expected to remain positive throughout the forecast period, despite potential restraints such as fluctuating exchange rates, potential trade policy changes, and occasional border processing delays. However, these challenges are likely to be offset by continued investment in automation and technology within the customs clearance sector, leading to improved efficiency and reduced processing times. This technological advancement, coupled with the sustained growth in e-commerce and cross-border trade, indicates a bright outlook for the Canadian customs clearance market. The focus on streamlining logistics and enhancing security will further solidify the need for professional customs brokerage services, assuring continued market expansion. This comprehensive report provides an in-depth analysis of the Canada customs clearance market, encompassing the period from 2019 to 2033. With a base year of 2025 and an estimated year of 2025, this report offers valuable insights into market size, trends, and future projections, crucial for businesses operating within or intending to enter this dynamic sector. The report leverages extensive research and data analysis to paint a clear picture of this multi-million dollar industry. Recent developments include: March 2023: Air Menzies International (AMI), a Canadian airfreight reseller, has built a new branch near Toronto Pearson International Airport. The new branch is AMI's second in Canada, and it will provide a wide range of wholesale airfreight services, including door-to-door services on global import and export shipments; exports with consolidation and 'Back2Back'; 'Quick2Ship,' AMI's express shipment platform; X-ray screening and warehousing services; and customs clearance and documentation support., March 2022: The Department of Finance Canada announced that they issued the Most-Favoured-Nation Tariff Withdrawal Order (2022-1) to remove Russia and Belarus from entitlement to the Most-Favoured-Nation (MFN) tariff, under the Customs Tariff of Canada. This was in response to the Russian Invasion of Ukraine, supported by Belarus, and in addition to the new sanctions Canada has imposed under the Special Economic Measures Act. Effective March 2, 2022, the General Tariff will be used to account for goods imported into Canada that originate from Russia and Belarus, with the Canada Border Services Agency (CBSA). Under the General Tariff, a customs duty rate of 35% is applicable on almost all goods. Russia, Belarus, and North Korea are the only countries whose imports are currently subject to the General Tariff.. Key drivers for this market are: Increasing international trade, Complex custom regulations. Potential restraints include: Regulatory Challenges, Geopolitical Uncertainity. Notable trends are: Increasing International Trade Driving the Market.

After demand for steel dropped during the arrival of the COVID-19 pandemic in 2019, steel prices also took a hit. However, in 2021, hot-rolled coil (HRC) steel prices were projected to rebound to around 555 U.S. dollars per metric ton—a 15 percent recovery from the dip in prices that had continued into 2020.

The U.S. market by the end of 2021 The United States is among the markets where hot-rolled coil (HRC) steel prices are the highest in the world. It was expected that U.S. steel distributors and producers, such as Nucor and United States Steel, would benefit from the steel tariffs on U.S. imports that came into effect in the spring of 2018. At the same time, U.S. imports from the countries subjected to the so-called Section 232 tariffs were projected to decline. By the end of 2021, Canada was the main country of origin for the U.S.’s imports for consumption of steel products.

Impact on the Chinese market Even though a large part of China's steel exports to the United States had already been restricted through antidumping or countervailing duties, trade tensions put pressure on steel markets worldwide, including China. Chinese steel product imports amounted to 717.7 million U.S. dollars, making it the ninth country of origin for steel products in the United States. Overall, rolled steel was the seventh largest category of Chinese export goods in 2021, amounting to almost 529 billion yuan (approximately 82 billion U.S. dollars). This comes after China's steel sector had a drop in sales to its domestic auto sector in early 2019.

Canada CA: Tariff Rate: Applied: Weighted Mean: Manufactured Products data was reported at 0.760 % in 2022. This records a decrease from the previous number of 1.770 % for 2021. Canada CA: Tariff Rate: Applied: Weighted Mean: Manufactured Products data is updated yearly, averaging 1.010 % from Dec 1989 (Median) to 2022, with 30 observations. The data reached an all-time high of 6.750 % in 1989 and a record low of 0.760 % in 2022. Canada CA: Tariff Rate: Applied: Weighted Mean: Manufactured Products data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Trade Tariffs. Weighted mean applied tariff is the average of effectively applied rates weighted by the product import shares corresponding to each partner country. Data are classified using the Harmonized System of trade at the six- or eight-digit level. Tariff line data were matched to Standard International Trade Classification (SITC) revision 3 codes to define commodity groups and import weights. To the extent possible, specific rates have been converted to their ad valorem equivalent rates and have been included in the calculation of weighted mean tariffs. Import weights were calculated using the United Nations Statistics Division's Commodity Trade (Comtrade) database. Effectively applied tariff rates at the six- and eight-digit product level are averaged for products in each commodity group. When the effectively applied rate is unavailable, the most favored nation rate is used instead. Manufactured products are commodities classified in SITC revision 3 sections 5-8 excluding division 68.;World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade and Development's Trade Analysis and Information System (TRAINS) database and global imports data from the United Nations Statistics Division's Comtrade database.;;The tariff data for the European Union (EU) apply to EU Member States in alignment with the EU membership for the respective countries/economies and years. In the context of the tariff data, the EU membership for a given country/economy and year is defined for the entire year during which the country/economy was a member of the EU (irrespective of the date of accession to or withdrawal from the EU within a given year). The tariff data for the EU are, thus, applicable to Belgium, France, Germany, Italy, Luxembourg, and the Netherlands (EU Member State(s) since 1958), Denmark and Ireland (EU Member State(s) since 1973), the United Kingdom (EU Member State(s) from 1973 until 2020), Greece (EU Member State(s) since 1981), Spain and Portugal (EU Member State(s) since 1986), Austria, Finland, and Sweden (EU Member State(s) since 1995), Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovakia, and Slovenia (EU Member State(s) since 2004), Romania and Bulgaria (EU Member State(s) since 2007), Croatia (EU Member State(s) since 2013). For more information, please revisit the technical note on bilateral applied tariff (https://wits.worldbank.org/Bilateral-Tariff-Technical-Note.html).

The recent housing market cycle has driven the sawmill and wood production industry’s performance. Initially, the surge in residential construction and renovation in Canada and the US in 2021, spurred by low interest rates and high disposable incomes, drove significant demand for softwood lumber, leading to a 43.5% jump in revenue for industry mills. However, rising interest rates in 2022 cooled housing demand, causing a significant drop in lumber prices and revenue. In 2024, the industry faced ongoing challenges due to rising costs, tariffs and reduced demand, with major companies like West Fraser and Canfor reporting losses and closing mills to correct the supply-demand imbalance for lumber. The longstanding Canada-US trade dispute over softwood lumber continues, with tariffs raised to 14.54% in 2024, prompting Canada to file legal challenges. Further increases are expected to be implemented in 2025. The industry is grappling with the impacts of severe wildfires that hinder mill operations and access to timber resources, further exacerbating economic difficulties. As a result, over the past five years, revenue has fallen at an estimated annualized rate of 4.0% to $18.8 billion through the end of 2025, with low growth of 1.6% forecast for the current year. Future performance will depend on the US and Canadian housing markets, which are facing challenges relating to home affordability. Tariffs from the ongoing softwood lumber dispute between the US and Canada will continue to affect industry sawmills, prompting companies to adapt by improving efficiency or relocating facilities. Market conditions are pushing major lumber players to consolidate operations, with some acquiring mills in the US to bypass tariffs. Natural threats like wildfires and wood-boring insects pose ongoing risks to log supplies essential for sawmill operations. Over the next five years, industry revenue is forecast to grow at a CAGR of 1.7% to $20.5 billion through the end of 2030.

Canada CA: Tariff Rate: Most Favored Nation: Simple Mean: Manufactured Products data was reported at 2.380 % in 2022. This records a decrease from the previous number of 2.480 % for 2021. Canada CA: Tariff Rate: Most Favored Nation: Simple Mean: Manufactured Products data is updated yearly, averaging 4.110 % from Dec 1989 (Median) to 2022, with 30 observations. The data reached an all-time high of 10.650 % in 1989 and a record low of 2.380 % in 2022. Canada CA: Tariff Rate: Most Favored Nation: Simple Mean: Manufactured Products data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Trade Tariffs. Simple mean most favored nation tariff rate is the unweighted average of most favored nation rates for all products subject to tariffs calculated for all traded goods. Data are classified using the Harmonized System of trade at the six- or eight-digit level. Tariff line data were matched to Standard International Trade Classification (SITC) revision 3 codes to define commodity groups. Manufactured products are commodities classified in SITC revision 3 sections 5-8 excluding division 68.;World Bank staff estimates using the World Integrated Trade Solution system, based on data from United Nations Conference on Trade and Development's Trade Analysis and Information System (TRAINS) database.;;The tariff data for the European Union (EU) apply to EU Member States in alignment with the EU membership for the respective countries/economies and years. In the context of the tariff data, the EU membership for a given country/economy and year is defined for the entire year during which the country/economy was a member of the EU (irrespective of the date of accession to or withdrawal from the EU within a given year). The tariff data for the EU are, thus, applicable to Belgium, France, Germany, Italy, Luxembourg, and the Netherlands (EU Member State(s) since 1958), Denmark and Ireland (EU Member State(s) since 1973), the United Kingdom (EU Member State(s) from 1973 until 2020), Greece (EU Member State(s) since 1981), Spain and Portugal (EU Member State(s) since 1986), Austria, Finland, and Sweden (EU Member State(s) since 1995), Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovakia, and Slovenia (EU Member State(s) since 2004), Romania and Bulgaria (EU Member State(s) since 2007), Croatia (EU Member State(s) since 2013). For more information, please revisit the technical note on bilateral applied tariff (https://wits.worldbank.org/Bilateral-Tariff-Technical-Note.html).

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Flip Flops Market Size 2024-2028

The flip flops market size is forecast to increase by USD 6.83 billion at a CAGR of 5.01% between 2023 and 2028.

The market is experiencing significant growth due to several key trends. One notable trend is the rise in rubber production and the subsequent decrease in leather production, making rubber flip flops a more cost-effective and eco-friendly alternative. Another trend is the increasing number of advertising and marketing campaigns, which are driving consumer demand for these comfortable and versatile footwear options. Furthermore, fluctuations In the prices of raw materials, such as rubber and synthetic materials, are impacting the market dynamics. These factors, among others, are shaping the growth trajectory of the market.

What will be the Size of the Flip Flops Market During the Forecast Period?

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The market experiences dynamic fluctuations driven by various factors. Health concerns, such as foot health and comfort, continue to shape consumer preferences, leading to an increasing demand for ergonomic designs and high-quality materials. Environmental impact is another significant consideration, with a growing trend towards sustainable and eco-friendly products made from papyrus, wood, and palm leaves. Regulatory compliance and geopolitical considerations, including trade tariffs and geopolitical tensions, also influence market trends. Fashion trends and fads, such as personalized flip-flops with Contrado Imaging Ltd's custom fabric or graphic footwear, further contribute to the market's diversity. Product innovations, including low-pricing, durability, and yoga-inspired solethreads, cater to travelers and female end-users.
Environmental pollution and harmful materials are key challenges, with a shift towards using sustainable materials and reducing waste. The global population's increasing demand for flip-flops as clothing and home products further expands the market's reach.

How is this Flip Flops Industry segmented and which is the largest segment?

The flip flops industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Distribution Channel

  Offline
  Online


End-user

  Men/boys
  Women/girls
  Children


Geography

  North America

    Canada
    US


  Europe

    Germany


  APAC

    China
    India


  South America



  Middle East and Africa

By Distribution Channel Insights

The offline segment is estimated to witness significant growth during the forecast period.

The market caters to a diverse consumer base, with a focus on durability and value being key purchasing factors. Offline retail channels dominate sales due to the inability to physically try on flip flops through online platforms. Retailers differentiate themselves by providing value-added services, such as customized foot scans and foot spat relief, enhancing the buying experience. Fashion trends and eco-conscientiousness influence the market, with sustainable materials like papyrus, wood, and palm leaves gaining popularity. Regulatory compliance, geopolitical considerations, and trade tariffs impact the industry. Product innovations include personalized flip-flops and eco-friendly materials, addressing health concerns related to plantar fasciitis and achilles tendonitis.

The competitive footwear market comprises various segments, including sandals, sneakers, and slides. End-users, particularly females, seek flip-flops for yoga and leisure activities. Brands, departmental stores, discount shoe stores, and specialized retailers dominate the distribution landscape, with online distribution channels and internet retailing gaining traction.

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The Offline segment was valued at USD 10.30 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 30% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in North America is experiencing growth due to several factors. The introduction of new products and increasing popularity of online shopping platforms for footwear are key drivers. Additionally, there is a rising trend towards eco-friendly raw materials in flip flop production, such as papyrus, wood, and palm leaves. Customization is also a significant factor, with personalized flip-flops gaining popularity among consumers. In the North American market, there is a growing preference for high-

Canada CA: Tariff Rate: Applied: Simple Mean: All Products data was reported at 1.830 % in 2022. This records a decrease from the previous number of 2.060 % for 2021. Canada CA: Tariff Rate: Applied: Simple Mean: All Products data is updated yearly, averaging 4.140 % from Dec 1989 (Median) to 2022, with 30 observations. The data reached an all-time high of 9.660 % in 1989 and a record low of 1.830 % in 2022. Canada CA: Tariff Rate: Applied: Simple Mean: All Products data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Trade Tariffs. Simple mean applied tariff is the unweighted average of effectively applied rates for all products subject to tariffs calculated for all traded goods. Data are classified using the Harmonized System of trade at the six- or eight-digit level. Tariff line data were matched to Standard International Trade Classification (SITC) revision 3 codes to define commodity groups. Effectively applied tariff rates at the six- and eight-digit product level are averaged for products in each commodity group. When the effectively applied rate is unavailable, the most favored nation rate is used instead. To the extent possible, specific rates have been converted to their ad valorem equivalent rates and have been included in the calculation of simple mean tariffs.;World Bank staff estimates using the World Integrated Trade Solution system, based on data from United Nations Conference on Trade and Development's Trade Analysis and Information System (TRAINS) database.;;The tariff data for the European Union (EU) apply to EU Member States in alignment with the EU membership for the respective countries/economies and years. In the context of the tariff data, the EU membership for a given country/economy and year is defined for the entire year during which the country/economy was a member of the EU (irrespective of the date of accession to or withdrawal from the EU within a given year). The tariff data for the EU are, thus, applicable to Belgium, France, Germany, Italy, Luxembourg, and the Netherlands (EU Member State(s) since 1958), Denmark and Ireland (EU Member State(s) since 1973), the United Kingdom (EU Member State(s) from 1973 until 2020), Greece (EU Member State(s) since 1981), Spain and Portugal (EU Member State(s) since 1986), Austria, Finland, and Sweden (EU Member State(s) since 1995), Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovakia, and Slovenia (EU Member State(s) since 2004), Romania and Bulgaria (EU Member State(s) since 2007), Croatia (EU Member State(s) since 2013). For more information, please revisit the technical note on bilateral applied tariff (https://wits.worldbank.org/Bilateral-Tariff-Technical-Note.html).

The Canadian steel industry is currently facing a challenging period marked by a projected 12.4% contraction in 2025, with total revenues falling to $15.2 billion. Although the industry posted a 2.5% CAGR over the current period, this figure is largely due to strong gains in 2021, followed by subsequent declines. This downturn is primarily driven by the imposition of a 25% US tariff on Canadian steel imports, which has sharply reduced export volumes and reduced the profit margin, leading to layoffs and production slowdowns. While some losses are being offset by reciprocal Canadian tariffs and government support for domestic procurement, the industry’s trajectory reflects the struggle to adapt to a rapidly shifting trade environment and persistently low steel prices. Companies are responding by ramping up domestic sales, seeking new international markets and enhancing operational efficiency, but the near-term outlook remains pressured by global overcapacity and weak demand. Structurally, the Canadian steel industry is undergoing significant consolidation, highlighted by Cleveland-Cliffs’ $3.4 billion acquisition of Stelco in late 2024. This deal exemplifies a broader trend toward fewer, larger and more integrated producers, as competitive pressures and market volatility force smaller or less efficient mills to close or merge. The number of steel manufacturing establishments in Canada has steadily declined. Industry responses to the current crisis include not only trade action and procurement reform but also investments in modernization and green steel initiatives. While these measures may enhance long-term competitiveness and innovation, they also raise concerns about reduced supplier diversity, workforce restructuring and the potential for higher barriers to entry for new firms. Looking ahead, the outlook for the Canadian steel industry remains cautious. Revenues are projected to decline further, reaching $14.5 billion by 2030, with a projected CAGR of -1.0% over the next five years. Continued global oversupply, subdued demand and competition from low-cost producers are expected to keep steel prices and profit under pressure. The industry will likely see more consolidation within North America as companies seek scale and resilience, while downstream industries may benefit from lower input costs but face risks from potential supply disruptions. To navigate these headwinds, Canadian steelmakers must prioritize innovation, cost management and product differentiation, especially in specialty and green steel. Strategic adaptation, scenario planning and agile supply chain management will be essential for maintaining competitiveness and financial stability in an increasingly volatile and concentrated market.