Toronto, August 1, 2025
Today, August 1, 2025, US President Donald Trump, by way of Executive Order, increased tariffs on goods made in Canada entering the United States, from 25 percent to 35 percent.
Note, this tariff does not apply to articles that are products of Canada that qualify for duty-free entry under the Agreement between Canada, the United States of America, United Mexican States (CUSMA) (referred to USMCA in the U.S.).
For goods that are products of Canada, that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 1, 2025, heading 9903.01.10 of the HTSUS is amended by deleting “25%” each place that it appears and by inserting “35%” in lieu thereof.
Additional tariffs which were to be imposed on Mexico today have been paused for 90-days.
The US Customs and Border Protection have issued the following notice:
CSMS # 65798609 – Update – Additional Duties on Imports from Canada
Transshipment:
(a) all articles of Canada that do not qualify as originating under USMCA and are determined by U.S. Customs and Border Protection (CBP) to have been transshipped to evade applicable duties under section 2 of this order shall be subject to (i) an additional ad valorem rate of duty of 40 percent, in lieu of the additional ad valorem rate of duty applicable under section 2 of this order to goods of the country of origin; (ii) any other applicable or appropriate fine or penalty, including those assessed under 19 U.S.C. 1592; and (iii) any other United States duties, fees, taxes, exactions, or charges applicable to goods of the country of origin. CBP shall not allow, consistent with applicable law, for mitigation or remission of the penalties assessed on imports found to be transshipped to evade applicable duties.
Partial Exemptions:
These additional duties shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of CBP, and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed (in Canada), as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in Canada), less the cost or value of such products of the United States, as described.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
