Customs Tariffs
Information on U.S. tariffs imposed on Canadian products
In recent months, U.S. President Donald J. Trump has announced various tariffs on Canadian goods:
Reciprocal Tariffs:
- On February 20, 2026, the United States Supreme Court invalidated the reciprocal tariffs imposed by Donald J. Trump in April 2025 under the International Emergency Economic Powers Act (IEEPA). This decision nullifies the 35% tariffs imposed on goods that do not comply with the Canada–United States–Mexico Agreement (CUSMA).
- On February 24, 2026, new 10% tariffs come into effect on goods imported into the United States. Several categories are exempt, including CUSMA-compliant goods, certain critical minerals, as well as specific energy, agricultural, and pharmaceutical products, and natural resources and fertilizers not available in sufficient quantities in the United States. The surtax will remain in effect until July 24, 2026, unless modified or extended by Congress.
Sectoral Tariffs:
- Customs duties of 25% on non-CUSMA-compliant auto parts and 25% on passenger vehicles and light trucks.
- 50% tariffs on steel and aluminum.
- 50% tariffs on semi-finished copper products and copper-rich derivative products. Customs duties will not apply to copper scrap and copper-based raw materials such as copper ores, concentrates, mattes, cathodes, and anodes.
- Customs duties of 45% on lumber and construction timber, and 25% on certain upholstered furniture, which will increase to 30% on January 1, 2026.
Canada’s response: counter-tariffs imposed on American goods
The Canadian government responded to these tariffs by imposing customs duties on various goods from the United States:
- 25% tariffs on steel and aluminum;
- Customs duties on US goods not covered by the CUSMA as of September 1. The Government of Canada is eliminating countervailing duties on U.S. goods covered by the CUSMA.
The government wants to implement reciprocal procurement policies to reserve access to federal government contracts for Canadian suppliers and our trusted trading partners.
Canada’s temporary relief for the automotive, health and safety sectors
On May 7, the Government of Canada issued the United States Surtax Remission Order (Motor Vehicle), 2025.
The purpose of this executive order is to grant temporary relief from 25% customs surtaxes on certain vehicles imported from the United States, in order to :
- Supporting Canadian automotive producers;
- Recognizing the integration of the North American automotive industry;
- Encouraging production and investment in Canada.
The United States Surtax Remission Order (2025) was also published.
The Order in Council grants temporary relief from Canadian surtaxes on certain U.S. products imported by Canadian entities (public or private) active in :
- Public health
- Health care
- Public safety
- National security
It also provides exemptions for :
- Products used in the manufacture, processing or packaging of food and beverages
- Products essential to public health or healthcare
On October 17, the Government of Canada announced a two-month extension of the exemptions provided for in the United States Surtax Remission Order (2025).
- In addition to these changes, other measures to reduce customs duties on imports from the United States and China have been implemented for businesses that meet strict conditions (e.g., shortages, contractual obligations).
On December 12, 2025, the government announced that the general remission of Canadian customs duties on imports from the United States will once again be temporarily extended for the following products:
- Until January 31, 2026: steel products used in manufacturing, processing, food and beverage packaging, and agricultural production in Canada, except for steel products used in the manufacture of motor vehicles, aerospace goods, and their parts, for which the remission is extended until June 30, 2026.
- Until June 30, 2026: aluminum products used in manufacturing, processing, food and beverage packaging, and agricultural production in Canada.
- Until June 30, 2026: goods used for public health, health care, public safety, and national security purposes.
