What a US importer pays on Canadian goods today
US duties are owed by the importer of record, usually the US buyer, not the Canadian seller.[3] What a Canadian product pays turns on one question first: is it entered duty-free as an originating good under the United States-Mexico-Canada Agreement (USMCA)? Every 2025 and 2026 tariff action on Canada has treated those goods differently from the rest.
As of October 7, 2026, an entry of Canadian-origin goods is built from these layers.
- The normal duty or the USMCA rate. Originating goods claimed under USMCA enter at the preferential rate, which for most lines is free, and are also exempt from the merchandise processing fee.[4] Goods that don't qualify pay the Column 1 General rate for their HTS line.[1]
- A 10% Section 301 duty on products of Canada under heading 9903.05.29 since July 24, 2026, except for goods entered free of duty under USMCA (9903.05.93) and the general exemptions listed in U.S. note 52.[2][1]
- Section 232 duties instead of the Section 301 duty on covered goods: steel, aluminum and copper, softwood lumber and wood products, vehicles and parts, trucks and buses. USMCA qualification lowers the vehicle rates and some steel derivative rates, but not the lumber rate or most metals rates.[1]
- Antidumping and countervailing duties on goods under an order, such as softwood lumber. USMCA does not remove them.[26][27]
- Fees: the merchandise processing fee on formal entries of goods that don't claim USMCA and, for goods unloaded from a vessel, the harbor maintenance fee.[33][34]
The US duty stack on goods from Canada, October 7, 2026
The table lists each measure that applies, or applied during 2025 and 2026, to goods of Canadian origin. Rates are additional to the Column 1 or USMCA rate unless the row says otherwise.
| Measure | Rate | USMCA duty-free goods | Legal basis | Effective dates |
|---|---|---|---|---|
| Section 301, forced labor (in force) | 10%[2] | Exempt (9903.05.93)[1] | Section 301, Trade Act of 1974; 91 FR 47318; 9903.05.29[2][1] | From July 24, 2026[2] |
| Section 232 steel, aluminum, copper (in force) | 50% or 25% of full customs value by annex; 15% combined tier for Annex III[20] | Not exempt; limited quantities authorized by Commerce for auto supply chains get a reduced rate (9903.82.18, 9903.82.19); USMCA steel derivatives in Annex I-C pay 25% on non-US content (9903.82.20)[1][22] | Section 232; Proclamation 11021[20] | Full-value basis from April 6, 2026[20] |
| Section 232 softwood lumber (in force) | 10%[21] | Not exempt; no Canada line in the HTS[1] | Proclamation 10976; 9903.76.01[21][1] | From October 14, 2025[21] |
| Section 232 vehicles and parts (in force) | 25% on cars, light trucks and parts; 25% on medium and heavy trucks and parts; 10% on buses[23][24] | Approved USMCA vehicles: 25% on non-US content only; USMCA parts: no 232 duty (9903.94.06, 9903.74.10)[1] | Proclamations 10908 and 10984[23][24] | Cars April 3, 2025; trucks November 1, 2025[23][24] |
| Antidumping and countervailing duties | Set by each order and company[26] | Still apply | Tariff Act of 1930; Commerce orders | Order by order |
| Section 122 surcharge (ended) | 10%[16] | Exempt (9903.03.07)[1] | Proclamation 11012; 9903.03.01[16] | February 24 to July 24, 2026[17] |
| IEEPA northern-border tariff (ended) | 25%, then 35% from August 1, 2025; energy and potash 10%[7][9][11] | Exempt from March 7, 2025 (9903.01.14)[9][1] | Executive Order 14193; 9903.01.10, 9903.01.13, 9903.01.15[7][1] | March 4, 2025 to February 23, 2026[8][14] |
Notes to the table
Each note applies to the rows named in it. A licensed customs broker confirms which Chapter 99 lines go on the entry.
- Note 1, what counts as USMCA duty-free. The Section 301 and Section 122 exemptions cover products of Canada entered free of duty under USMCA, including the treatment in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99, and whether or not "S" or "S+" appears in the Special column for the HTS line.[1][2] The exemption depends on the entry: the importer has to claim USMCA, which it does by putting "S" or "S+" before the subheading.[4] A Canadian good that is not originating under the USMCA rules of origin, or that is entered without a USMCA claim, pays the 10%.
- Note 2, other Section 301 exemptions. Goods listed in U.S. note 52(b) of Chapter 99, civil aircraft and parts, listed articles for pharmaceutical use, donations and informational materials are exempt for every origin.[1] So are goods that pay Section 232 duties on metals, vehicles and parts, trucks and parts, wood products, covered semiconductors or patented pharmaceuticals (9903.05.90).[1]
- Note 3, Section 232 and USMCA. For autos and trucks, Commerce can approve an importer to pay the 25% only on the non-US content of a USMCA-qualifying vehicle (9903.94.03, 9903.74.03).[1][25] USMCA derivative steel articles in the Annex I-C tier pay 25% on the non-US content and on US content above 40% of value (9903.82.20, 9903.82.21).[1][22] Full Section 232 rates are in our Section 232 guide.
- Note 4, Section 201 safeguard. Canada is excluded from the quartz surface products safeguard in force since August 15, 2026.[1]
- Note 5, in-transit rule. Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. ET on July 24, 2026, and entered before 12:01 a.m. ET on July 28, 2026 were exempt from the Section 301 duty.[1]
What changed, and when: February 2025 to October 2026
Each date is the first day the change applied to goods entered for consumption or withdrawn from warehouse, at 12:01 a.m. Eastern time unless noted.
- March 4, 2025. 25% IEEPA tariff on products of Canada and 10% on Canadian energy, under Executive Order 14193 of February 1, 2025, after a pause from February 4.[7][8]
- March 7, 2025. Goods entered duty-free under USMCA are exempted, and the rate on non-USMCA potash is cut to 10%.[9]
- April 2025. The reciprocal tariffs of Executive Order 14257 do not apply to Canada or Mexico; their border-emergency tariffs apply instead.[10]
- August 1, 2025. The IEEPA rate on non-USMCA Canadian goods rises from 25% to 35%, and to 40% on goods CBP finds were transshipped to evade it.[11]
- October 14, 2025. Section 232 duty of 10% on softwood timber and lumber.[21]
- November 1, 2025. Section 232 duties on medium- and heavy-duty trucks, their parts and buses.[24]
- February 20, 2026. The Supreme Court holds in Learning Resources, Inc. v. Trump that IEEPA does not authorize tariffs. Executive Order 14389 ends the IEEPA tariffs on Canada the same day.[12][13]
- February 24, 2026. CBP stops collecting IEEPA duties (from 12:00 a.m. ET). The 10% Section 122 surcharge starts, with USMCA duty-free goods exempt.[14][16]
- April 6, 2026. Section 232 metals duties move to the full customs value of the product.[20]
- July 1, 2026. First USMCA joint review. The United States does not agree to extend the agreement for a new 16-year term.[31]
- July 24, 2026. The Section 122 surcharge expires, and the 10% Section 301 duty on products of Canada begins, with USMCA duty-free goods exempt.[16][2]
- October 5, 2026. USTR opens comments for the 2027 USMCA joint review, due January 12, 2027.[31]
The IEEPA tariff on Canada: 25%, then 35%, then zero
Executive Order 14193 imposed a 25% tariff on products of Canada and 10% on Canadian energy under the International Emergency Economic Powers Act (IEEPA), citing the flow of illicit drugs across the northern border. It took effect on March 4, 2025.[7][8] From March 7, 2025, goods entered duty-free under USMCA were exempt, and non-USMCA potash paid 10%.[9] Executive Order 14325 raised the 25% to 35% from August 1, 2025 and set 40% for non-USMCA goods CBP found were transshipped to evade the duty.[11] Canadian goods were never subject to the separate reciprocal tariff.[10]
On February 20, 2026 the Supreme Court held that IEEPA does not authorize tariffs, and CBP stopped collecting all IEEPA duties on goods entered from 12:00 a.m. ET on February 24, 2026.[12][14] IEEPA duties paid on Canadian goods are refunded with interest through CBP's CAPE process, claimed by the importer of record or the customs broker that filed the entries.[15] See the tariff refund guide for eligibility and deadlines, and get an IEEPA refund estimate for what your entries paid.
Section 122 and Section 301: the 10% duties, with USMCA goods exempt
Proclamation 11012 replaced the IEEPA tariffs with a 10% surcharge under Section 122 of the Trade Act of 1974 from February 24 to July 24, 2026. It exempted goods entered free of duty as goods of Canada or Mexico under USMCA, and it did not apply to Section 232 goods.[16] Its legality is on appeal, and CBP has published no Section 122 refund process as of October 7, 2026.[18][19] The Section 122 refund status page tracks the case.
From July 24, 2026, USTR imposed a 10% Section 301 duty on products of Canada. USTR found that Canada has a prohibition on imports made with forced labor but has failed to enforce it effectively, and put Canada in the 10% group of economies.[2] The HTS exempts products of Canada entered free of duty under USMCA (9903.05.93).[1] This duty is separate from the China Section 301 lists covered in our Section 301 guide.
Section 232 on Canadian steel, aluminum, lumber and vehicles
Section 232 duties apply by product, and for most programs Canada pays the general rate. Since April 6, 2026, Canadian steel and aluminum articles and Annex I-A derivatives pay 50% of the full customs value, and Annex I-B goods 25%.[20] USMCA qualification does not lower these rates, except for limited quantities of Canadian- or Mexican-melted steel and smelted aluminum that Commerce authorizes for producers supplying US vehicle and parts makers (9903.82.18, 9903.82.19).[1]
Lumber. Canadian softwood timber and lumber pay a 10% Section 232 duty under 9903.76.01, and upholstered wooden furniture and kitchen cabinets and vanities pay 25% under 9903.76.02 and 9903.76.03, with no Canada-specific line.[21][1] Softwood lumber also carries the antidumping and countervailing duties described below.
Vehicles and parts. USMCA-qualifying auto parts and medium- and heavy-duty vehicle parts pay no Section 232 duty as of October 7, 2026 (9903.94.06, 9903.74.10). USMCA-qualifying vehicles pay 25% on their non-US content once Commerce approves the importer's US-content submission.[1][25]
Antidumping and countervailing duties on Canadian goods
Antidumping (AD) and countervailing (CVD) duties are set product by product and company by company, and they apply on top of every duty above, USMCA or not.
Softwood lumber. In the reviews of 2023 entries, Commerce set AD rates of 35.47% for Canfor and 20.53% for companies not individually examined, and CVD rates of 12.12% for Canfor, 16.82% for West Fraser and 14.63% for non-selected companies.[26][27] Producers never examined in the investigation or a review keep the 6.04% AD all-others rate from the original investigation.[28] Commerce published preliminary results of the AD and CVD reviews of 2024 entries on April 14, 2026, with lower preliminary rates for non-selected companies (10.66% AD, 14.17% CVD); as of October 7, 2026 no final results of those reviews had appeared in the Federal Register, so the rates for 2024 entries are not settled.[28][29]
Other orders. Orders cover other Canadian products too, such as utility scale wind towers, whose AD and CVD orders were continued in March 2026.[30] Ask a licensed customs broker to check your HTS line and producer against Commerce's orders before you buy.
Claiming USMCA on an entry
USMCA treatment is claimed by the importer on the entry summary, by putting "S" or "S+" before the HTS subheading of each originating good. The claim rests on a certification of origin completed by the importer, exporter or producer.[4] The certification has no prescribed form, must be in the importer's possession when the claim is made, must contain the data elements listed in 19 CFR 182.12, and is given to CBP on request.[5][6] If the importer later learns the certification is wrong, it must correct the claim and pay any duty owed.[4]
With so many 2026 duties exempting USMCA duty-free goods, a valid claim is now worth the 10% Section 301 duty on top of the normal rate. Whether a product qualifies under the rules of origin is a question for the producer and a licensed customs broker.
Low-value shipments. Duty-free de minimis treatment is suspended for all countries, including Canada, so small shipments need an entry and pay the duties that apply. See our de minimis guide.[32]
The USMCA joint review: where it stands
USMCA entered into force on July 1, 2020, and ends on July 1, 2036 unless each party confirms it wants a new 16-year term. At the first joint review on July 1, 2026, the United States did not agree to extend the agreement. The three countries will now hold a joint review every year until all three agree to extend or the term runs out.[31]
On October 5, 2026 USTR asked for public comments and hearing requests ahead of the 2027 joint review, due by 11:59 p.m. EST on January 12, 2027.[31] As of October 7, 2026, USMCA preferences remain in force, and the review has not by itself changed any tariff rate.
How to find the rate for your product
The duty depends on the 10-digit HTS line, whether the good qualifies for USMCA and the entry date. These steps get you to an estimate; the importer's licensed customs broker confirms it.
- Classify the product to 10 digits with the HTS code finder.
- Open the tariff simulator with Canada as origin, enter the code and the entry date, and check each Chapter 99 duty it lists.
- Confirm with the producer whether the good is originating under USMCA and get a certification of origin before it ships.
- Check whether the line is covered by Section 232 or by an antidumping or countervailing duty order. Browse import duty by HTS code for how common lines stack.
- Ask the importer's licensed customs broker to confirm the claim and the Chapter 99 lines before entry.