Tariff Resources and Support

Canada and the U.S. share one of the world’s most successful partnerships, built on a foundation of shared history, common values, and strong ties, and are each other’s largest trading partners, with deeply integrated economies.

Safeguarding the strength and success of this partnership remains a top priority for Canada.

Continuous threat of tariffs by the U.S., risks discouraging investments in the U.S., as investors grow hesitant to allocate more capital into an unpredictable U.S. market.

The Government of Canada is committed to reducing internal trade barriers to encourage more trade and opportunities for Canadian businesses across the country.

On April 2, 2025, President Trump announced a 10% reciprocal tariff on all countries, with some countries receiving a higher rate (e.g., China at 34%, EU at 20%, Japan at 24%, South Korea at 25%).

The blanket 10% tariff will take effect April 5, while the country-specific tariffs will take effect April There is no end date specified.

Canada is not affected by the April 2 reciprocal tariff announcement. However, it fundamentally changes the international trading

The Section 232 25% tariff on steel and aluminum continues to apply.

The Section 232 25% tariff on automotive vehicles took effect on April 3.

The Section 232 tariff on auto parts will take effect on a date to be announced in the Federal Register, but no later than May 3.

For automotive vehicles that qualify for preferential tariff treatment under CUSMA, the value of “U.S. content” (e.g., value of parts produced entirely or substantially transformed in the U.S.) within the automobiles can be excluded from the tariffs, subject to approval by the Secretary of Commerce.

For auto parts, the 25% tariff does not apply to auto parts that qualify for preferential treatment under CUSMA until such time that the Secretary, in consultation with U.S. Customs and Border Protection (CBP), establishes a process for applying the 25% tariff exclusively to the value of the non-U.S. content.

Countermeasures

On April 3, Prime Minister Carney announced countermeasures in response to the Section 232 tariff on automotive vehicles. These countermeasures include 25% tariffs on non-CUSMA compliant fully assembled vehicles imported into Canada from the U.S.; 25% tariffs on non-Canadian and non- Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the U.S.; and Canada’s intention to develop a framework for auto producers to avoid our counter tariffs that incentivizes production and investment in Canada.

Prime Minister Carney has stated that every dollar raised from these countermeasures will go directly to support Canadian auto workers.

President Trump announced 25% tariffs on steel and aluminum imports on March 12th.

A 25% tariff on steel and aluminum will lead to significant cost increases for U.S. manufacturing, less competitive U.S. exports of finished goods, and ultimately higher prices for consumers.

These Proclamations on imports of steel and aluminum are a clear violation of U.S. trade obligations under CUSMA and the WTO. Specifically:

The Proclamations run counter to the May 2019 Joint Statement, under which the U.S. removed Section 232 tariffs and Canada withdrew its countermeasures and WTO litigation.

The Proclamations violate the CUSMA side letter on future Section 232 measures which obliges the U.S. to not adopt or maintain tariffs or restrictions against Canada for a period of at least 60 days after the imposition of a measure to enable negotiations.

The CUSMA side letter permits Canada to take countermeasures immediately

Reciprocal Tariffs from Canada

Due to the implementation of these 25% tariffs effective March 13, 2025, Canada implemented 25% reciprocal tariffs on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, and on additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion. The list of additional products affected by counter tariffs includes tools, computers and servers, display monitors, sport equipment, and cast-iron products.

With regards to the imposition of tariffs on the steel and aluminum content in certain derivative products by the U.S., the government is currently assessing this aspect of the U.S. tariffs and may impose further counter tariffs in response.

On 3 April 2025, new countermeasures to protect Canadian workers and businesses and defend Canada’s economy were announced. These countermeasures include:

25 per cent tariffs on non-CUSMA compliant fully assembled vehicles imported into Canada from the United States;

25 per cent tariffs on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the United States; and,

Canada’s intention to develop a framework for auto producers that incentivizes production and investment in Canada.

These measures build upon the Government of Canada’s previously announced support for Canadian workers and businesses.

Understanding CUSMA Compliance

What Canadian exporters need to know:

Despite U.S. tariffs imposed on Canada under the United States (U.S.) International Emergency Economic Powers Act (IEEPA), Canadian exporters can still benefit from duty‑free access to the U.S., if their goods are Canada–United States–Mexico Agreement (CUSMA) compliant.

Being CUSMA compliant means that goods meet the CUSMA rules of origin and qualify for preferential tariff treatment.

What this means for your business:

• Over 98% of tariff lines and 99.9% of bilateral trade with the U.S. are eligible for duty‑free access under the CUSMA.
• Canadian goods must be certified as compliant with the CUSMA rules of origin by the exporter or producer (this means the goods are eligible for preferential tariff treatment), and U.S. importers must claim the preference to benefit from duty‑free treatment.

Ensure your product meets the CUSMA rules of origin and complete a certification of origin

• Determine your product’s HS code.
• Determine if your good meets the rules of origin (product‑specific rules of origin are written based on HS codes).
• Complete a certification of origin (there is no requirement for this information to be provided on a specific form. It may be provided on an invoice or any other document.)
• Consider using a template certificate to avoid errors.
• Provide the certification of origin to your U.S. importer so they can claim the preferential tariff treatment.
• Request an advance ruling for certainty about how the good will be treated upon entry into the U.S.
• Contact a certified customs broker for additional support:
  • For a directory of Customs Brokers in the U.S: Permitted Customs Brokers Listing | U.S. Customs and Border Protection
  • For a directory of Customs Brokers in Canada: Customs Broker Search | CSCB National Office

For goods imported into the U.S., the final decision on the classification and tariff treatment of a good rests with the U.S. Customs and Border Protection (CBP).

Need help with CUSMA compliance? Call the Trade Commissioner Service’s support line at 1‑833‑760‑1167.

Learn more: Understanding CUSMA Compliance