Import duties from Canada to the US now depend almost entirely on one question: do your goods qualify as “originating” under the United States-Mexico-Canada Agreement? If yes, most products still enter duty-free or at low preferential rates. If no, expect an additional 25% tariff on top of the regular Harmonized Tariff Schedule rate, plus a Merchandise Processing Fee, possible excise taxes on things like alcohol and tobacco, and sector-specific duties on steel, aluminum, autos, and lumber that apply regardless of USMCA status.
What You’ll Pay Right Now
The baseline duty on any imported good is set by its ten-digit code in the Harmonized Tariff Schedule, administered by the U.S. International Trade Commission. That code determines the “regular” rate. On top of it, the current tariff environment adds several layers.
For USMCA-qualifying Canadian goods, most products continue to receive preferential (often zero) tariff treatment. For non-qualifying goods, additional duties apply. A 10% import surcharge on global imports was imposed in late February 2026 under Section 122 of the Trade Act of 1974, though USMCA-compliant goods and certain agricultural products are exempt.
Sector tariffs sit outside the USMCA exemption entirely. Steel, aluminum, automobiles, and lumber all face specific additional duties whether or not the product qualifies as originating. Because rates and legal authorities have shifted multiple times since early 2025, verifying the current HTS rate before every shipment is essential.
How USMCA Qualification Changes the Bill
USMCA preserved the zero-tariff treatment that existed under NAFTA for qualifying goods.1International Trade Administration. USMCA Overview To claim it, your goods have to meet the agreement’s Rules of Origin, which prove the product was genuinely produced or substantially transformed in Canada, the United States, or Mexico rather than simply routed through a Canadian warehouse.
Two paths qualify a product. Items wholly produced in a USMCA country (mined, harvested, or manufactured entirely there) qualify automatically. Products incorporating components from outside North America must undergo a “tariff shift,” meaning the manufacturing process changes the product’s HTS classification. Alternatively, products can qualify through Regional Value Content, which measures the percentage of North American value in the finished good.1International Trade Administration. USMCA Overview A small percentage of non-originating materials that fail the tariff shift test can sometimes be disregarded under a de minimis provision inside the USMCA itself.
Claiming preferential treatment means completing a Certification of Origin with nine mandatory data elements. There is no prescribed form; the certification can appear on an invoice or a standalone document. Required information includes the certifier’s identity and contact details, the exporter and producer information, a description of the goods with the six-digit HS classification, the specific origin criteria the goods satisfy, and the certifier’s dated signature accepting responsibility.2Office of the U.S. Trade Representative. USMCA Chapter 5 – Origin Procedures Missing any element can void the claim, at which point the full duty rate plus any additional tariffs kick in.
Sector Tariffs That Apply Regardless of USMCA
Steel and Aluminum
Canada’s previous exemption from Section 232 tariffs was terminated effective March 12, 2025. All Canadian steel and aluminum products, including derivative articles, face an additional 25% tariff under presidential proclamations issued through the Trade Expansion Act of 1962.3Government of Canada. Request for Consultations – US Section 232 Import Duties on Steel and Aluminum USMCA qualification does not exempt these products.
Automobiles and Auto Parts
A 25% tariff on imported automobiles took effect in April 2025, with auto parts following in May. Auto parts that qualify under USMCA can generally enter duty-free, though complete knock-down kits and parts compilations do not receive that exemption. For vehicles assembled in the U.S., manufacturers can receive a temporary offset accounting for a portion of parts value.
Lumber and Wood Products
Starting in October 2025, softwood timber and lumber imports face an additional 10% tariff on top of any existing anti-dumping or countervailing duties. Certain upholstered wooden furniture, kitchen cabinets, and vanities face higher rates that escalated to 30% and 50% respectively by January 2026. There is no USMCA exemption for these lumber tariffs, so fully Canadian-origin products are still hit.
Alcohol and Tobacco
Alcohol and tobacco owe federal excise taxes collected by the Alcohol and Tobacco Tax and Trade Bureau, in addition to any customs duties. Beer is taxed per barrel, wine per gallon, and distilled spirits per proof gallon, with reduced rates for smaller producers. Tobacco taxes vary by product type, calculated per thousand units for cigarettes and per pound for pipe tobacco.4Alcohol and Tobacco Tax and Trade Bureau. Tax Rates
Agricultural Products
Many agricultural goods are subject to tariff-rate quotas, which allow a set volume of imports at a lower duty rate during the quota period. Once that annual volume is reached, additional imports face a substantially higher tariff. Dairy, sugar, and certain meat products are the categories most commonly affected for Canadian imports.
The $800 De Minimis Exemption Is Suspended
The $800 de minimis exemption that once let low-value shipments enter duty-free no longer applies. Effective August 29, 2025, duty-free treatment for shipments valued at $800 or less was suspended for all countries, including Canada.5U.S. Customs and Border Protection. E-Commerce Frequently Asked Questions These shipments now face the same admissibility requirements and duty assessments as larger imports. The underlying statute, 19 U.S.C. § 1321, still exists, but executive action overrides it for now.6Office of the Law Revision Counsel. 19 US Code 1321 – Administrative Exemptions If your business relied on duty-free treatment for individual orders from Canadian suppliers, budget for duties on every shipment.
Personal Exemptions for Travelers
These rules are separate from commercial imports. U.S. residents returning from Canada with purchased goods receive a personal exemption of up to $800, provided the trip lasted at least 48 hours. The exemption covers items you carry with you, not goods shipped separately. If you’ve been in Canada for less than 48 hours, the exemption drops to $200. Goods must be declared to CBP, and undeclared items risk forfeiture.7U.S. Customs and Border Protection. Know Before You Go – Traveling Abroad
Alcohol and tobacco within the exemption are limited: generally one liter of alcohol and 200 cigarettes, though state law may impose tighter limits. Amounts over the exemption are dutiable at a flat rate on the next chunk of value, with standard tariff rates applying beyond that.
Fees Beyond the Duty Itself
Every formal customs entry triggers a Merchandise Processing Fee calculated at 0.3464% of the imported goods’ value, excluding duty, freight, and insurance. For fiscal year 2026, the minimum fee is $33.58 and the maximum is $651.50 per entry. A manual filing surcharge of $4.03 applies if you file paperwork outside the electronic system.8U.S. Customs and Border Protection. Customs User Fee – Merchandise Processing Fees
Goods arriving at U.S. ports by water also owe a Harbor Maintenance Fee of 0.125% of the cargo’s value. Air freight is exempt.9U.S. Customs and Border Protection. What Is the Harbor Maintenance Fee (HMF)? Since most U.S.–Canada trade moves by truck or rail, many Canadian shipments avoid this fee entirely.
The Paperwork You’ll File
The starting point is identifying the correct ten-digit HTS code. The first six digits follow the international Harmonized System used globally; the final four digits are U.S.-specific and set the exact duty rate.10International Trade Administration. Harmonized System (HS) Codes A wrong code can mean overpaying duties or triggering a penalty for underpayment.
A commercial invoice accompanies every shipment, identifying the goods in enough detail for CBP to verify the classification, along with quantity and price. If you’re claiming USMCA preferential treatment, the Certification of Origin goes with it. The official record of the transaction is CBP Form 7501, the Entry Summary, which consolidates classification, declared value, and duty calculations into one document CBP uses to assess what you owe.11U.S. Customs and Border Protection. CBP Form 7501 Entry Summary
Shipments valued at $2,500 or less generally qualify for an informal entry with simpler reporting and faster processing.12U.S. Customs and Border Protection. Filing an Informal Entry for Goods That Are Less Than $2500 in Value Above that threshold, a formal entry is required. Informal entries cannot be used for goods subject to quotas, anti-dumping duties, or countervailing duties, regardless of value.
Formal entries require a customs bond before CBP releases the goods. A single entry bond covers one shipment and is generally set at no less than the total entered value plus duties, taxes, and fees. Frequent importers use a continuous bond covering all entries over a 12-month period, typically set at 10% of the duties, taxes, and fees paid during that period. Either way, the minimum bond amount is $100.13U.S. Customs and Border Protection. Bonds – How Are Continuous and Single Entry Bond Amounts Determined? After filing and paying, CBP releases the goods. The entry is later “liquidated,” which is the government’s final accounting of what was owed and can produce a bill for more or a refund. Many importers hire a licensed customs broker to handle these filings.
Penalties and Recordkeeping
Inaccurate declarations carry steep penalties under 19 U.S.C. § 1592, scaled to how culpable the importer was:
- Negligence (failure to use reasonable care): a penalty of up to twice the duties the government was deprived of, or up to 20% of the dutiable value if the error did not affect duty calculations.
- Gross negligence (knowing disregard of obligations): up to four times the lost duties, or 40% of the dutiable value for errors not affecting duty assessments.
- Fraud (intentional misrepresentation): up to the full domestic value of the merchandise.
In every tier, the penalty is capped at the domestic value of the goods.14Office of the Law Revision Counsel. 19 USC 1592 – Penalties for Fraud, Gross Negligence, and Negligence Self-correction pays off: if you disclose an error before CBP starts investigating, penalties for negligence and gross negligence drop to just the interest on the unpaid duties, and fraud penalties fall to 100% of the lost duties.
Importers must keep all records related to their entries for five years from the date of entry. Anyone who filed a USMCA Certification of Origin must also maintain the supporting records for at least five years from the date the certification was completed.15Office of the Law Revision Counsel. 19 USC 1508 – Recordkeeping Production records, material sourcing documents, invoices, and supplier correspondence all fall within what CBP can demand during an audit.
Restricted and Prohibited Items
Some Canadian products need special permits or face outright prohibitions. Agricultural goods get the most scrutiny. Travelers bringing meat products (beef, pork, lamb, bison, and similar) face a 50-pound limit per person. Game meat from deer, elk, moose, or caribou is allowed in personal-use amounts with proof of origin such as a hunting license, and is not subject to the 50-pound cap. Dairy products need proof of Canadian origin, and poultry may be restricted during avian disease outbreaks.16Animal and Plant Health Inspection Service. Traveling Into the United States From Canada at Land Borders
Live plants require a phytosanitary certificate from the Canadian Food Inspection Agency and, for restricted species, a U.S. import permit. Plants must arrive bare-rooted or in an approved growing medium and be free of pests. Pet food and animal treats must be in unopened retail packaging, with raw or dehydrated items labeled as a product of Canada or the U.S., and a 50-pound-per-vehicle limit applies at land border crossings.16Animal and Plant Health Inspection Service. Traveling Into the United States From Canada at Land Borders
Wildlife and fish imports trigger a separate federal requirement. The U.S. Fish and Wildlife Service requires a Declaration for Importation or Exportation of Fish or Wildlife (Form 3-177) for any shipment of fish, wildlife, or plants. Failing to file violates the Endangered Species Act and can result in the shipment being denied entry.17U.S. Fish and Wildlife Service. Declaration for Importation or Exportation of Fish or Wildlife All agricultural and wildlife products must be declared to CBP at the border, even items you believe are clearly permitted.