Import duties from Canada to the US now come in layers: a base rate from the Harmonized Tariff Schedule, an additional country tariff on non-USMCA goods, sector-specific tariffs on steel, aluminum, autos, copper, and softwood lumber, and a set of federal fees that apply to nearly every entry. What you actually pay depends on one question above all others: does the shipment qualify under the United States-Mexico-Canada Agreement? USMCA-qualifying goods are exempt from most of the recent tariff escalations and often enter at a zero preferential rate. Non-qualifying goods can face 10, 12, or 25 percent on top of whatever the HTS already charges.
The Layers of Duty That Currently Apply
The rate structure changed several times in 2025 and 2026, so any figure you saw last year may be stale.
In February 2025, Executive Order 14193 imposed an additional 25 percent tariff on most Canadian products and 10 percent on energy and energy resources under the International Emergency Economic Powers Act.1Federal Register. Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border Those tariffs sat on top of the existing HTS rates. In February 2026, the Supreme Court struck down the IEEPA-based tariffs, and the administration replaced them with a global baseline tariff under a different statutory authority. Non-USMCA-compliant Canadian goods are subject to that replacement rate; USMCA-qualifying goods remain exempt. An April 2025 reciprocal tariff order had set a 12 percent fallback rate on non-USMCA Canadian goods if the IEEPA orders were terminated, though the rate actually imposed may differ.2The White House. Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits
Sector-specific tariffs under Section 232 of the Trade Expansion Act run in parallel and were not affected by the Supreme Court ruling. The full 25 percent Section 232 tariff on steel and aluminum applies to Canadian shipments; the exemption Canada previously held was eliminated.3The White House. Fact Sheet: President Donald J. Trump Restores Section 232 Tariffs Additional Section 232 tariffs apply to automobiles not built in the United States, copper, softwood lumber, and certain wood products.
Because rates have moved multiple times, verify the current rate for your specific product with CBP or a licensed customs broker before every shipment. A number quoted six months ago should not be trusted.
USMCA Qualification Is the Biggest Single Lever
USMCA-qualifying goods are exempt from the additional executive-order tariffs and receive preferential (often zero) rates under the Harmonized Tariff Schedule.2The White House. Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits The agreement is implemented through 19 U.S.C. Chapter 29.4Office of the Law Revision Counsel. 19 USC Chapter 29 – United States-Mexico-Canada Agreement Implementation
To qualify, a product must satisfy rules of origin requiring significant production or transformation within North America. Depending on the product, that means meeting a regional value content threshold, undergoing a specified tariff shift in classification, or both. The rules exist to stop goods actually made elsewhere from being routed through Canada to dodge duty.
Certification of Origin
Preferential treatment requires a valid certification of origin, completed by the importer, exporter, or producer. The certification must include the certifier’s identity and role, exporter and producer information, a description of the goods with their Harmonized System classification, the specific origin criterion the goods satisfy, and a signed statement that the certifier will maintain supporting documentation.5U.S. Customs and Border Protection. USMCA Frequently Asked Questions6eCFR. 19 CFR Part 182 – United States-Mexico-Canada Agreement
A completed certification is valid for four years from the date of signature. A blanket certification can cover multiple identical shipments for up to 12 months. Losing this paperwork or failing to produce it during a CBP verification means denial of the preferential rate and retroactive assessment of full duties across every affected shipment.
Why the Certification Is Worth More Than It Used to Be
Before 2025, the gap between USMCA-qualifying and non-qualifying goods was often a few percentage points. Now that gap can be 10, 12, or 25 percent on top of the base HTS rate. If your Canadian supplier can document North American origin, that certification pays real money on every load.
Classifying the Product Under the HTS
Every imported product has a ten-digit code in the Harmonized Tariff Schedule maintained by the U.S. International Trade Commission.7United States International Trade Commission. Harmonized Tariff Schedule The code determines the base duty rate on which everything else stacks.
CBP, not the importer, makes the final classification determination.8U.S. Customs and Border Protection. Harmonized Tariff Schedule – Determining Duty Rates Classify under the wrong code and, if the correct code carries a higher rate, you owe the difference plus potential penalties. Importers also overpay by picking a more general classification when a more specific one carries a lower rate. For high-value or complex shipments, a binding ruling from CBP locks in the classification before the goods ship.
How the Duty Is Calculated
Most duties are ad valorem: a percentage of the customs value. The customs value is generally the transaction value, meaning the price the buyer paid or agreed to pay for the goods when sold for export to the United States. That value includes packaging, production assistance provided to the manufacturer, selling commissions, and royalties. It does not include international freight or insurance.9U.S. Customs and Border Protection. What Value Should Be on the Commercial Invoice Submitted to U.S. Customs and Border Protection
The math is direct. A $50,000 shipment at a 4 percent duty rate produces $2,000 in base duties. Some products use specific rates (a fixed dollar amount per kilogram or per unit), and a few use compound rates. Additional tariffs from executive orders and Section 232 are calculated separately on top of the base amount.
Undervaluing the goods on the commercial invoice triggers penalties. Omitting assists, commissions, or royalties from the declared value counts as undervaluation, whether the omission was accidental or intentional.
Federal Fees Beyond the Duty
Two fees hit almost every formal entry, with a third for shipments that touch water and a fourth for agricultural inspection at the border.
Merchandise Processing Fee
Every formal entry pays 0.3464 percent of the imported goods’ value (excluding duty, freight, and insurance). For fiscal year 2026, the MPF has a floor of $33.58 and a ceiling of $651.50 per entry. Filing manually rather than electronically adds a $4.03 surcharge.10U.S. Customs and Border Protection. Customs User Fee – Merchandise Processing Fees
Harbor Maintenance Fee
Water-arrival cargo is charged 0.125 percent of value. Air cargo is exempt.11U.S. Customs and Border Protection. What Is The Harbor Maintenance Fee (HMF)? Most Canada-to-U.S. shipments moving by truck or rail avoid the HMF entirely, but Great Lakes and other waterway shipments incur it.
Agricultural Inspection Fees
APHIS charges quarantine inspection fees to keep agricultural pests and diseases out. Effective October 1, 2026, a commercial truck crossing pays $14.50 per trip. Frequent crossers can buy an annual transponder for $870.60 covering unlimited crossings within a calendar year. Commercial railroad cars pay $7.97 per crossing, with a $382.56 prepaid annual option.12Animal and Plant Health Inspection Service. Agricultural Quarantine and Inspection (AQI) User Fees Explained
Customs Bonds
Every formal entry requires a customs bond guaranteeing that duties, taxes, and fees will be paid. Two options exist. A single entry bond covers one shipment and generally must equal the entered value plus all estimated duties, taxes, and fees. A continuous bond covers all entries for a 12-month period and is set at 10 percent of the duties, taxes, and fees paid during that period. No bond can be less than $100.13U.S. Customs and Border Protection. Bonds – How Are Continuous and Single Entry Bond Amounts Determined?
For anyone importing from Canada more than occasionally, the continuous bond is almost always cheaper. Surety companies sell them for an annual premium that is a fraction of the bond’s face value, and a single-entry bond on one large shipment can cost more than a full year of continuous bond premiums.
The $800 De Minimis Exemption Is Gone
Before August 2025, shipments valued at $800 or less could enter duty-free with minimal paperwork under Section 321. That exemption was suspended globally, including for Canadian goods, effective August 29, 2025.14The White House. Suspending Duty-Free De Minimis Treatment for All Countries All shipments from Canada, regardless of value, now require full customs documentation and duty payment.
The One Big Beautiful Bill Act permanently repeals the statutory basis for the exemption effective July 1, 2027, so this is not a temporary suspension.15The White House. Fact Sheet: Suspending the De Minimis Exemption for Commercial Shipments Globally Individuals and small businesses ordering low-value goods from Canadian suppliers now face the full import process on every purchase.
Antidumping and Countervailing Duties
Some Canadian products carry antidumping or countervailing duties on top of regular tariffs. Antidumping duties apply when a Canadian manufacturer sells in the U.S. market below fair value. Countervailing duties offset foreign government subsidies that give producers an unfair price advantage. Rates can exceed 100 percent of the goods’ value.
Coverage is the tricky part. CBP maintains a searchable AD/CVD database, and Department of Commerce Federal Register notices identify products within the scope of active orders.16U.S. Customs and Border Protection. AD/CVD Data Canadian softwood lumber and certain steel products are among the categories most commonly affected. Importing covered goods without depositing the required duties draws enforcement quickly, so check before you ship.
Penalties If You Get It Wrong
Under 19 U.S.C. 1592, penalties for entry errors scale with culpability:
- Negligence: a civil penalty up to the lesser of the domestic value of the merchandise or two times the duties the government was deprived of. Where the error did not affect duty calculations, the penalty is capped at 20 percent of dutiable value.
- Gross negligence: up to the lesser of domestic value or four times the lost duties, with a 40 percent of dutiable value cap where duties were unaffected.
- Fraud: up to the full domestic value of the merchandise, with no alternative cap.17Office of the Law Revision Counsel. 19 USC 1592 – Penalties for Fraud, Gross Negligence, and Negligence
Prior disclosure changes the numbers substantially. If you find the error and report it to CBP before a formal investigation begins, negligence and gross negligence penalties are limited to interest on the unpaid duties, and fraud is capped at 100 percent of the lost duties rather than the full domestic value.17Office of the Law Revision Counsel. 19 USC 1592 – Penalties for Fraud, Gross Negligence, and Negligence If you catch a mistake on a past entry, self-reporting almost always beats waiting for CBP to find it.
Liquidation Isn’t the End of the File
Paying estimated duties at entry does not close the case. CBP enters a liquidation period to verify classification, valuation, and calculations. Entries not liquidated within one year of the entry date are automatically deemed liquidated at the rate and amount the importer declared, and CBP can extend liquidation up to four years total from the entry date if it needs more time.18Office of the Law Revision Counsel. 19 USC 1504 – Limitation on Liquidation If liquidation results in a higher duty than you deposited, you owe the difference. If it comes in lower, you get a refund.