- Tariffs are taxes imposed by a government on foreign goods entering their territory.
- Tariffs are synonymous with customs duties—taxes imposed by a country’s government on goods that are imported.
- Tariffs are usually a percentage of the price of the imported good.
- Governments impose tariffs on imported goods to regulate trade, protect domestic industries from foreign competition and generate revenue.
What are tariffs?
More About Tariffs
Tariffs are paid by importers directly to government tax authorities.
- Tariffs that Canada imposes on goods and services entering Canada are collected by Canada Border Services Agency (CBSA) agents at ports of entry. These revenues are then transferred to the federal government’s general revenues.
- Tariffs that the United States impose on goods and services entering the U.S. are collected by US Customs and Border Protection agents at ports of entry. These revenues are then directed to the United States Treasury.
To determine the applicable tariff rate for any imported goods, key information that importers must accurately declare includes:
- The customs value of the goods based on accepted or prescribed accounting methods
- The customs classification of the goods based on Harmonized System (HS) codes
- The quantity of the goods
- The origin of the goods
While importers are responsible for paying them, tariffs can be passed on to consumers through increased prices.
Businesses can use the Canada-Tariff Finder to check import or export tariffs for specific goods and markets. Use this link to access the free tool: https://www.tariffinder.ca/en/
The Government of Canada also has online tools to search for tariffs by product and country: https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cptpp-ptpgp/tariff_country_product-information-tarifaire_pays_produit.aspx?lang=eng.
- 25% tariff on all non-CUSMA compliant Canadian and Mexican imports, with a lesser 10% tariff on potash and energy, which took effect on March 4.
- This essentially means that things made in Canada with Canadian, U.S., or Mexican inputs or where most of the value is added in Canada are still tariff-free for the moment. More details can be found at https://www.tradecommissioner.gc.ca/united-states-of-america-etats-unis-amerique/self-serve-resources_ressources-libre-service.aspx?lang=eng#understanding.
- 50% tariff on global steel and aluminum imports, including Canadian products, which took effect on June 4.
- 50% tariff on appliances containing steel, such as refrigerators and ovens, which took effect on June 23.
- 25% tariff on global auto imports, including Canadian products, that do not meet CUSMA rules of origin requirements, which took effect on April 3.
- On August 1, 2025, the U.S. raised tariffs on non-CUSMA Canadian imports from 25% to 35%, with a 40% transshipment penalty for goods rerouted to evade duties. Certain domestic energy and potash exports remain at the 10% rate.
- A new tariff targeting non-U.S. content in auto parts is under consideration, with implementation anticipated later this year.
- On October 17, 2025, the U.S. announced new tariffs effective November 1, 2025:
- A 25% tariff will be imposed on imported medium and heavy-duty trucks and their parts.
- A 10% tariff will be imposed on imported buses.
- For CUSMA-compliant trucks imported from Canada or Mexico, the 25% tariff will apply only to the non-U.S. content of the vehicle. Buses will not receive this preferential treatment.
- On March 20, 2025, China imposed retaliatory duties of 25% on pork, fish, and seafood, as well as 100% on canola oil, canola meal, and peas exported from Canada. These products represented $3.6 billion in Canadian exports to China in 2024, accounting for 5.6% of China’s total imports from Canada.
- China has imposed a 75.8% anti-dumping duty on Canadian canola seed.
- Effective April 9, 2025, Canada has imposed 25% tariffs on non-CUSMA-compliant U.S.-made vehicles, and on the non-Canadian and non-Mexican content of CUSMA-compliant U.S.-made vehicles. Additional details can be found here.
- As of Sept. 1, 2025, Canada lifted the 25% retaliatory tariffs on U.S. goods that comply with CUSMA—even those originally covered by the March tariffs — restoring duty-free status to roughly 85% of bilateral trade. However, tariffs continue to apply to U.S. steel, aluminum, and autos.
- On Sept. 4, 2025, the federal government confirmed that aid packages are being prepared for aluminum, steel, and canola producers to mitigate the impacts of U.S. and Chinese tariffs.
- On October 15, 2025, Canada granted tariff relief on select steel and aluminum imports from both the U.S. and China to support domestic industries. Additional details can be found here.
- On October 17, 2025, Canada extended its tariff relief programs for U.S. goods. Exemptions for U.S. imports used in manufacturing, processing, and food packaging were extended for two months and expanded to include agricultural production. Exemptions for goods related to public health and national security were also extended. Additional details can be found here.
Tariff Update August 2026
On July 20, 2026, President Trump signed three Presidential Proclamations under Section 338 of the Tariff Act of 1930. These impose an additional 50% ad valorem duty on specified products of Canada.
The duties take effect at 12:01 a.m. Eastern Time on August 19, 2026, for goods entered for consumption or withdrawn from warehouse for consumption on or after that time. There is no general in-transit exception.
No. The additional 50% duty applies to listed products of Canada regardless of whether the goods qualify as originating under CUSMA/USMCA. Preferential rates under the agreement do not shield covered goods from this Section 338 duty.
There are three new headings, each tied to one proclamation:
- 9903.03.12 — Alcoholic beverages and related retaliation items
- 9903.03.13 — Dairy and dairy-adjacent products
- 9903.03.14 — Broad “motor vehicles” retaliation list (mostly non-automotive goods)
Importers must declare the ordinary HTSUS classification plus the applicable 9903.03.xx code on the entry.
This is the shortest and most targeted list. It primarily covers:
- Milk and cream in concentrated, powdered, and liquid forms (0402 series)
- Whey and modified whey products; natural milk constituents (0404 series)
- Lactose and lactose syrup; selected other sugars and molasses
- Casein, caseinates, milk albumin, and certain protein substances
- A small number of related items (hop cones, peppermint oil, non-alcoholic beer, certain baking mixes)
Indigenous food producers, value-added dairy processors, or those supplying ingredients to U.S. manufacturers should check the full official list (see sources below)
Core coverage includes beer, wine, vermouth, cider, sake, and the full range of distilled spirits (brandy, whisky, rum, gin, vodka, liqueurs, tequila, bitters, etc.).
The same list also includes several non-alcohol items that are highly relevant to Indigenous exporters:
- Hockey sticks and ice/field-hockey equipment (HTSUS 9506.99.25) — direct relevance for manufacturers, suppliers, and community programs
- Densified wood, wooden tableware, wood marquetry, skewers/drink mixers, pickets/posts
- Basketwork and other articles of vegetable materials
- Certain kraft paper, greaseproof paper, and coated paperboard
Despite its name, this proclamation does not primarily target finished vehicles or auto parts (those are already under Section 232 and are carved out). Instead it imposes the 50% duty on a wide retaliation basket of several hundred HTSUS subheadings.
Highest-priority categories for Indigenous businesses:
- Forestry, lumber, plywood, particle board, and other wood products (extensive Chapter 44 coverage)
- Natural honey and selected agricultural / plant products
- Furniture, wooden ornaments, and value-added wood crafts
- Selected textiles, apparel, and outdoor/sporting goods
The complete code list is in Annex II of the Motor Vehicles proclamation. Classification — not common product name — controls.
Yes. The proclamations and U.S. Note 51 exclude:
- Energy products
- Potash
- Fish and certain fishery products
- Critical minerals
- Goods already subject to Section 232 duties
- Certain civil aircraft articles under the WTO Agreement on Trade in Civil Aircraft
Many Indigenous communities have significant economic interests in energy, critical minerals, potash, and fisheries. Those specific goods remain outside the new 50% duty, but always confirm exact classification
The 50% is additional. It stacks on top of the ordinary Column 1 or Special rate, any antidumping or countervailing duties (AD/CVD), and most other applicable charges.
CUSMA origin may still reduce the ordinary duty, but it does not eliminate the Section 338 50% duty.
The importer (or customs broker) must declare:
- The ordinary 8- or 10-digit HTSUS classification of the product, and
- The applicable Chapter 99 code: 9903.03.12, 9903.03.13, or 9903.03.14
Separate exclusion codes (9903.03.15 / 9903.03.16) exist for claiming Section 232 or other carve-outs. Goods entered into a Foreign Trade Zone on or after the effective date generally require privileged foreign status.
Follow these steps:
- Pull the last 12–24 months of commercial invoices for U.S. shipments and list every 8-digit (or 10-digit) HTSUS code used.
- Cross-check each code against the official Annexes to the three proclamations and U.S. Note 51 (links at the end of this FAQ).
- Confirm classification in writing with your Canadian customs broker and the U.S. importer/broker before any August 19 shipment.
Do not rely on product names alone. Only the 8-digit HTSUS code determines whether the 50% duty applies.
In order of typical exposure:
- Wood and forestry products (Chapter 44 and related paper) — under both 9903.03.12 and especially 9903.03.14
- Hockey sticks and related equipment (9506.99.25 under 9903.03.12)
- Honey and selected agricultural products
- Wooden crafts, furniture components, and value-added wood articles
- Any dairy or alcohol lines you export
Immediate action checklist:
- Map every HTS code in your U.S. export portfolio against the official Annexes.
- Contact your U.S. customers and Canadian broker to confirm coverage and projected landed cost (including the new 50%).
- Review existing contracts for price-adjustment, force-majeure, or duty-pass-through language.
- Consider accelerating any shipments that can clear before the effective date (if commercially feasible).
- Evaluate alternative markets for the most exposed product lines.
- Ensure commercial invoices, packing lists, and origin documentation are complete and consistent.
- Contact national and regional Indigenous business organizations (including CCIB) and your economic development corporation for shared intelligence and advocacy support.
Use only the primary sources below for final verification:
Alcoholic Beverages (9903.03.12)
- Proclamation: https://www.whitehouse.gov/presidential-actions/2026/07/imposing-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of-the-united-states-with-respect-to-alcoholic-beverages/
- Annex I (product list PDF): https://www.whitehouse.gov/wp-content/uploads/2026/07/ANNEX-I-2.pdf
Dairy (9903.03.13)
- Proclamation: https://www.whitehouse.gov/presidential-actions/2026/07/imposing-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of-the-united-states-with-respect-to-dairy/
- Federal Register (full code list under U.S. Note 51(b)(2)): https://public-inspection.federalregister.gov/2026-14992.pdf
Motor Vehicles / Broad List (9903.03.14)
- Proclamation: https://www.whitehouse.gov/presidential-actions/2026/07/imposing-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of-the-united-states-with-respect-to-motor-vehicles/
- Annex I (product descriptions): https://www.whitehouse.gov/wp-content/uploads/2026/07/ANNEX-I-3.pdf
- Annex II (HTSUS modifications & full code list): https://www.whitehouse.gov/wp-content/uploads/2026/07/Annex-II-2.pdf
- White House Fact Sheet (July 20, 2026): https://www.whitehouse.gov/fact-sheets/2026/07/fact-sheet-president-donald-j-trump-imposes-additional-tariffs-on-canada/
Product descriptions in the Annexes are informational only and do not limit the legal scope of the action. Always use the 8-digit HTSUS codes.
Contact your economic development corporation and national Indigenous business organizations, including the Canadian Council for Indigenous Business (CCIB). Each organization can help with coordinated intelligence, advocacy, and connections to trade advisors experienced with Indigenous exporters.
Disclaimer
This FAQ is a practical reference based on the official Annexes to the three July 20, 2026 Presidential Proclamations under Section 338 and related U.S. Note 51 to the HTSUS, as available at the time of preparation. It is not legal advice. Tariff classification is fact-specific. Always verify current codes, exclusions, and CBP guidance with a licensed customs broker or trade counsel before making entry decisions. The lists can be amended by subsequent Federal Register notices or presidential action.
What is happening and when
On July 20, 2026, President Trump signed three Presidential Proclamations under Section 338 of the Tariff Act of 1930. These impose an additional 50% ad valorem duty on specified products of Canada. The duties take effect at 12:01 a.m. Eastern Time on August 19, 2026, for goods entered for consumption or withdrawn from warehouse for consumption on or after that time.
The three new Chapter 99 headings
- 9903.03.12 — Alcoholic beverages and related retaliation items
- 9903.03.13 — Dairy and dairy-adjacent products
- 9903.03.14 — Broad “motor vehicles” retaliation list (mostly non-automotive goods)
Key rule: The 50% additional duty applies regardless of CUSMA/USMCA origin status.
Preferential duty-free or reduced rates under CUSMA do not shield covered goods from this Section 338 duty. The duty stacks on top of ordinary HTSUS rates and most other applicable charges.
Important carve-outs that may protect some Indigenous sectors
Energy products, potash, fish, critical minerals, and goods already subject to Section 232 duties are excluded. Many Indigenous communities have significant economic interests in these sectors — those specific goods remain outside the new 50% duty. Confirm classification carefully.
Official title: Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy
New HTSUS heading: 9903.03.13
Additional duty: The duty provided in the applicable subheading + 50%
Complete list of affected 8-digit HTSUS subheadings (from official Annex / U.S. Note 51(b)(2)):
| HTSUS Code | Product Description | Add’l Duty | Notes for Indigenous Exporters |
|---|---|---|---|
| 0402.10.05 / .10 / .50 | Milk & cream, concentrated/powdered, fat ≤1.5% | +50% | Dairy powders common in food processing |
| 0402.21.xx series | Milk & cream, concentrated, fat >1.5% (multiple subheadings) | +50% | Check exact subheading |
| 0402.91 / 0402.99 | Milk & cream, concentrated (not powdered / sweetened) | +50% | |
| 0404.10.xx / 0404.90.xx | Whey, modified whey, and natural milk constituents | +50% | Whey protein concentrates relevant to food/nutrition |
| 0506.90.00 | Bones and horn-cores, unworked | +50% | Limited Indigenous exposure |
| 1210.20.00 | Hop cones, ground/powdered or in pellets | +50% | Beer-related |
| 1301.90.91 | Natural gums, resins, etc., nesoi | +50% | Possible plant/resin products |
| 1702.11 / 1702.19 | Lactose and lactose syrup | +50% | Dairy-adjacent |
| 1702.30–1702.90 | Other sugars and syrups (selected) | +50% | |
| 1703.10 / 1703.90 | Molasses | +50% | |
| 1901.20.35 | Mixes and doughs for bakers’ wares containing dairy | +50% | Value-added food |
| 2202.91.00 | Non-alcoholic beer | +50% | |
| 3301.24.00 | Essential oil of peppermint | +50% | Possible plant-based products |
| 3501.10 / 3501.90 | Casein and caseinates | +50% | |
| 3502.20.00 | Milk albumin (lactalbumin) | +50% | |
| 3504.00.50 | Peptones and protein substances | +50% |
Note: This is the most targeted list. Indigenous food producers, value-added dairy processors, or those supplying ingredients to U.S. manufacturers should check every code against their product classifications. Full exact list is in the official dairy Annex / U.S. Note 51(b)(2).
Official title: Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages
New HTSUS heading: 9903.03.12
Additional duty: The duty provided in the applicable subheading + 50%
Core covered products include beer (2203), sparkling and still wines (2204 series), vermouth, cider/sake/other fermented beverages (2206), undenatured ethyl alcohol for beverage use (2207), and the full range of distilled spirits (2208 series: brandy, whisky, rum, gin, vodka, liqueurs, tequila, bitters, etc.).
Additional retaliation items on the same list that are highly relevant to Indigenous exporters
| HTSUS Code | Product Description | Add’l Duty | Notes for Indigenous Exporters |
|---|---|---|---|
| 3301.19.10 | Essential oils of grapefruit | +50% | Plant/extract products |
| 4413.00.00 | Densified wood | +50% | Forestry / wood products |
| 4419.90.91 | Wooden tableware and kitchenware (non-bamboo/tropical) | +50% | Crafts / value-added wood |
| 4420.90.80 | Wood marquetry, inlaid wood, wooden furniture articles nesoi | +50% | Furniture / crafts |
| 4421.91.60 | Skewers, candy sticks, ice cream sticks, drink mixers of wood | +50% | Value-added wood / crafts |
| 4421.91.70 | Pickets, posts, rails of bamboo; assembled fence sections | +50% | Forestry / outdoor products |
| 4602.19.80 | Basketwork and other articles of vegetable materials nesoi | +50% | Traditional crafts / basketry |
| 4804.11.00 / 4806 / 4810 / 4811 | Kraftliner, greaseproof papers, coated paper/paperboard | +50% | Paper / forestry downstream |
| 9506.99.25 | Ice-hockey and field-hockey articles and equipment (other than balls and skates) | +50% | HOCKEY STICKS & related equipment — direct relevance to Indigenous manufacturers, suppliers & community programs |
Full official list is in Annex I to the Alcoholic Beverages proclamation. Hockey equipment is explicitly included under 9506.99.25.
Official title: Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles
New HTSUS heading: 9903.03.14
Additional duty: The duty provided in the applicable subheading + 50%
This list contains several hundred 8-digit subheadings. It does not primarily cover finished motor vehicles or auto parts (those are largely already under Section 232 and are carved out). Instead it covers a wide retaliation basket including natural honey, plants/seeds, extensive wood and plywood products, paper, textiles, furniture, sporting goods, and many other categories.
Highest-priority categories for Indigenous businesses (confirm exact 8-digit codes against the official Annex II / U.S. Note 51(b)(3)):
- Forestry / lumber / plywood / particle board / wood products — extensive coverage under Chapter 44. Many First Nations and Métis forestry and value-added wood enterprises are directly exposed.
- Honey and agricultural products — including 0409.00.00 (natural honey) and various seeds/plants.
- Furniture and wooden crafts/ornaments — multiple 94xx and 44xx codes.
- Textiles, apparel, and related — selected lines that may affect craft or value-added textile producers.
- Sporting and outdoor equipment — selected 95xx codes.
The complete enumeration appears in Annex II to the Motor Vehicles proclamation and the corresponding subdivision of U.S. Note 51. Classification — not common product name — controls. Do not rely on product descriptions alone.
The proclamations and U.S. Note 51 exclude:
- Energy products
- Potash
- Fish and certain fishery products
- Critical minerals
- Goods already subject to Section 232 duties (steel, aluminum, automobiles/parts under existing Section 232 measures, etc.)
- Certain civil aircraft articles under the WTO Agreement on Trade in Civil Aircraft
Indigenous communities with interests in energy (oil, gas, electricity, renewables), potash, fisheries, and critical minerals projects generally fall outside the new 50% duty for those specific goods. Always confirm classification.
The 50% is additional. It stacks on the ordinary Column 1 or Special rate, any AD/CVD, and most other duties. CUSMA origin does not eliminate it.
On the entry, the importer (or broker) must declare the ordinary HTSUS classification plus the applicable Chapter 99 code (9903.03.12, .13, or .14). Separate exclusion codes (9903.03.15 / 9903.03.16) exist for claiming Section 232 or other carve-outs. Goods entered into FTZs on or after the effective date generally require privileged foreign status.
- Highest immediate risk: Forestry and wood products (lumber, plywood, particle board, value-added wood, densified wood, wooden tableware, marquetry, pickets/posts) under both 9903.03.12 and especially 9903.03.14.
- Hockey sticks and hockey equipment (9506.99.25 under 9903.03.12) — direct relevance for manufacturers, suppliers, and community programs.
- Honey, certain agricultural/plant products, and value-added food under the broad list and dairy list.
- Crafts, basketry, wooden ornaments, furniture components, and selected textiles under the broad list.
- Dairy and pure alcoholic beverages are more specialized but still relevant for any Indigenous producers in those sectors.
- Pull your last 12–24 months of export invoices and commercial invoices to the United States. List every 8-digit (or 10-digit) HTSUS code used.
- Cross-check every code against the three official Annexes (White House / Federal Register publications for the three proclamations and U.S. Note 51).
- Before August 19 shipments: confirm with your U.S. customer/importer and Canadian customs broker whether the goods are covered. Obtain written confirmation of classification.
- Ask your broker/freight forwarder: exact Chapter 99 code that will be declared; whether any Section 232 or other exclusion applies; projected landed duty cost including the new 50%; FTZ or bonded warehouse options if timing is flexible.
- Review existing contracts for price-adjustment, force-majeure, or duty-pass-through clauses.
- Contact national and regional Indigenous business organizations (including CCIB) and your economic development corporation for coordinated advocacy, shared intelligence, and possible support channels.
- Document origin and classification carefully; retain records for potential future claims or negotiations.
- Re-price or renegotiate contracts that ship after August 18, 2026.
- Evaluate alternative markets (domestic Canadian, other export destinations) for the most exposed lines.
- Accelerate shipments that can clear before the effective date if commercially feasible (no general in-transit exception).
- Ensure all documentation (commercial invoice, packing list, certificates of origin, classification rationale) is complete and consistent.
- Monitor CBP guidance, Federal Register technical corrections, and any subsequent presidential modifications closely.
Map your specific HTS codes against the official Annexes immediately. Classification, not common product name, determines liability.
- Wood and forestry products (Chapter 44 and related paper) — under both 9903.03.12 and especially 9903.03.14.
- Hockey sticks and related equipment (9506.99.25 under 9903.03.12).
- Honey and selected agricultural products.
- Wooden crafts, furniture components, and value-added wood articles.
- Any dairy or alcohol lines you export.
All HTSUS codes referenced in this document are drawn strictly from the official Annexes to the three July 20, 2026 Presidential Proclamations and the related amendments to U.S. Note 51 of the Harmonized Tariff Schedule. Use these primary sources for final verification.
Alcoholic Beverages (9903.03.12)
- Proclamation page: https://www.whitehouse.gov/presidential-actions/2026/07/imposing-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of-the-united-states-with-respect-to-alcoholic-beverages/
- Annex I (product list PDF): https://www.whitehouse.gov/wp-content/uploads/2026/07/ANNEX-I-2.pdf
Dairy (9903.03.13)
- Proclamation page: https://www.whitehouse.gov/presidential-actions/2026/07/imposing-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of-the-united-states-with-respect-to-dairy/
- Federal Register public inspection (contains the full code list under U.S. Note 51(b)(2)): https://public-inspection.federalregister.gov/2026-14992.pdf
Motor Vehicles / Broad List (9903.03.14)
- Proclamation page: https://www.whitehouse.gov/presidential-actions/2026/07/imposing-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of-the-united-states-with-respect-to-motor-vehicles/
- Annex I (product descriptions PDF): https://www.whitehouse.gov/wp-content/uploads/2026/07/ANNEX-I-3.pdf
- Annex II (HTSUS modifications & full code list PDF): https://www.whitehouse.gov/wp-content/uploads/2026/07/Annex-II-2.pdf
Additional Guidance
- White House Fact Sheet (July 20, 2026):https://www.whitehouse.gov/fact-sheets/2026/07/fact-sheet-president-donald-j-trump-imposes-additional-tariffs-on-canada/
- The controlling lists are those published with the proclamations and any subsequent Federal Register notices that amend U.S. Note 51.
- Always use the 8-digit HTSUS codes from these Annexes. Product descriptions in the Annexes are informational only and do not limit the legal scope of the action.
Disclaimer
This document is a practical reference based on the official Annexes to the three July 20, 2026 Presidential Proclamations under Section 338 and related U.S. Note 51 to the HTSUS, as available at the time of preparation. It is not legal advice. Tariff classification is fact-specific. Always verify current codes, exclusions, and CBP guidance with a licensed customs broker or trade counsel before making entry decisions. The lists can be amended by subsequent Federal Register notices or presidential action.
Where can I go for support or additional information?
Government Support
The Government of Canada has announced new industry support programs to protect Canadian workers including:
- Launching the Trade Impact Program through Export Development Canada (EDC). The program will deploy $5 billion over two years, starting this year, to help exporters reach new markets for Canadian products and help companies navigate the economic challenges imposed by the tariffs, including losses from non-payment, currency fluctuations, lack of access to cash flows, and barriers to expansion. EDC is part of the Government of Canada’s trade ecosystem of experts who are available to help you save time, learn more about your target markets, and identify the capital you need to grow. Some of EDC’s offerings include:
- A full suite of credit insurance products to lower your risk of doing business abroad
- Help with getting access to working capital
- Expertise to enable you to learn more about international markets
- Connections to international companies in need of your products and services
- Making $500 million in favourably priced loans available through the Business Development Bank of Canada (BDC) to support impacted businesses in sectors directly targeted by tariffs, as well as companies in their supply chains. Businesses will also benefit from advisory services in areas such as financial management and market diversification. BDC offers financing, advisory solutions, and capital to small and medium-sized businesses in all industries and at all stages of growth. Here, you can access specific support for navigating trade uncertainty.
- Providing $1 billion in new financing through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry. This lending offer will help address cash flow challenges so that businesses can adjust to a new operating environment and continue to supply the high-quality agricultural and food products that Canadians rely on.
- Introducing temporary flexibilities to the EI Work-Sharing Program to increase access and maximum agreement duration. The Work-Sharing Program provides partial EI benefits to employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their employer’s control.
- Trade Commissioner Service (TCS) is offering Canadian businesses support by connecting them with funding and support programs, international opportunities, and a network of trade commissioners in more than 160 cities worldwide.
- CanExport SMEs supports small and medium-enterprises to export Canadian goods and services to new international markets. Successful applicants can receive up to $50,000 to support eligible market development activities for existing products and services in foreign countries.
- The Canadian International Innovation Program (CIIP) supports Canadian companies in pursuing international research and development (R&D) collaborations with foreign partners on projects that have the potential for commercialization.
- A performance-based remission framework for automakers. This will allow automakers that continue to manufacture vehicles in Canada to import a certain number of U.S.-assembled, CUSMA-compliant vehicles into Canada, free of the countermeasure tariffs that Canada has imposed. The remission granted to these companies is contingent on these automakers continuing to produce vehicles in Canada and on completing planned investments. The number of tariff-free vehicles a company is permitted to import will be reduced if there are reductions in Canadian production or investment.
- The government intends to provide temporary 6-month relief for goods imported from the U.S. that are used in Canadian manufacturing, processing and food and beverage packaging, and for those used to support public health, health care, public safety, and national security objectives. The remission is provided on a time-limited basis to provide businesses and entities with additional time to adjust their supply chains and prioritize domestic sources of supply if available.
- Establishment of the Large Enterprise Tariff Loan Facility (LETL). This program will support eligible large businesses—including those that contribute to Canada’s food security, energy security, economic security and national security—that are facing difficulties in accessing traditional sources of market financing, by providing access to liquidity. Companies will be required to make efforts to maintain jobs and sustain business activities in Canada. Those that were already involved in insolvency proceedings before this crisis will not be eligible.
- Canada granted tariff relief on select steel and aluminum imports from both the U.S. and China to support domestic industries. Additional details can be found here.
- Canada extended its tariff relief programs for U.S. goods. Exemptions for U.S. imports used in manufacturing, processing, and food packaging were extended for two months and expanded to include agricultural production. Exemptions for goods related to public health and national security were also extended. Additional details can be found here.
- The federal government has confirmed that aid packages are being provided for aluminum, steel, and canola producers.
- Additional supports will be added to this list as they’re announced.
Provincial and Territorial Support
- Tax deferrals for businesses until June 20, 2025. Find out more at: https://www.manitoba.ca/finance/taxation/.
- Connecting with businesses and workers through a dedicated hotline to provide information and assistance about the tariffs. Contact at 204-945-8011 or toll-free at 1-877-827-4330 (1-877-TARIFF-0) within Manitoba.
- Deferring select provincially administered taxes for six months from April 1, 2025, to October 1, 2025, giving businesses and job creators approximately $9 billion worth of cash flow they need to keep workers employed and weather the economic turmoil.
- The Workplace Safety and Insurance Board (WSIB) is issuing a further $2 billion rebate for safe employers to support businesses and help keep workers on the job, in addition to the previous $2 billion rebate distributed in March.
- FRONTIERE program: Aims to maintain the activities and liquidity of Québec’s export companies in the manufacturing and primary sectors, with loans up to $50 million.
- ESSOR program: Provides interest-free repayable loans and grants non-repayable contributions to businesses with investment projects of more than $10 million that stand out in terms of productivity.
- Panorama financing and support: Provides working capital to increase or diversify sales in Canada and internationally (excluding the U.S.).
- Grand V initiative: Aims to stimulate investments and accelerate the shift toward innovation and sustainable productivity to propel business growth.
- FORCE program: Assists businesses affected by tariffs or the threat of tariffs in developing the skills of their workforce.
- Local Investment Funds (LIF): Companies can benefit from a six-month deferral for reimbursement, including principal and interest repayment, of the financing granted under the FLI.
- Caisse de dépôt et placement du Québec’s (CDPQ) program: Encourages Quebec companies to launch new projects to increase their productivity or to make a strategic pivot to new markets.
- Opportunities NB: Leverage its existing $30 million strategic assistance budget to address current challenges, support contingency planning, market diversification, and productivity improvements
- $40 million competitiveness and growth program: Aimed at enhancing the long-term sustainability of New Brunswick’s large export-intensive companies.
- Working capital loans: Up to $5 million in financial support to help businesses maintain operations.
- New Brunswick Fisheries Fund: $4 million allocated to support seafood producers, who are among the hardest hit.
- Flexible labour market support program: Providing support and services to those whose jobs have been affected by tariffs.
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- Export Enhancement and Diversification Fund: Covers up to 60 percent of costs (to a maximum of $32,000) associated with market research, advertising, trade shows, and market strategies.
- Tariff Working Capital Assistance Program: Provides financial relief to businesses affected by tariffs, helping them maintain operations, preserve jobs, and invest in alternative supply chain strategies. Eligible businesses can receive up to $500,000 over six years at a fixed rate of four percent, with principal payments deferred for 12 months.
- Expanded trade missions: Innovation PEI is doubling trade missions for Island exporters, with planned missions across Canada, Europe, Southeast Asia, and the Mexico/Caribbean region.
- Expanded support for the PEI agriculture industry: Investment of additional funds into existing Sustainable CAP programs that support farmers, industry groups, and agri-businesses in finding new markets.
Additional Information
Canadian Commercial Corporation (CCC) supports you to pursue sales to foreign governments at all levels and provides a government-to-government contracting mechanism that de-risks the transaction for both you and your buyer.
Innovation, Science and Economic Development Canada (ISED) helps you find and take advantage of the government services you need to expand or scale up your business in Canada and around the world.
- Canadian Importers Database: Provides summary reports and lists of companies importing goods into Canada.
- Trade data online: Trade Data Online provides the ability to generate customized reports on Canada and U.S. trade in goods with over 200 countries.
Supporting Canadian exporters through United States tariff challenges (Government of Canada): Access real-time information and updates concerning U.S. tariffs and resources from various agencies.
Canada Customs Tariff: Get tariff classifications for goods you want to import into Canada. The Canadian Customs Tariff shows the preferential tariffs for products coming from countries with which Canada has a free trade agreement. It is based on the World Customs Organization’s Harmonized Commodity Description and Coding System.
Canadian Society of Customs Brokers (CSCB): Partner with a customs broker or freight forwarder to determine the correct code for your goods. It can be complex in some cases.
Process for requesting remission of tariffs that apply on certain goods from the U.S.: The Government of Canada is outlining a framework and process for how it will consider remission requests for the tariffs on products from the United States (U.S.) that apply beginning on March 4, 2025. Under specific circumstances, remission allows for relief from the payment of tariffs, or the refund of tariffs already paid.
FAQ for Indigenous Exporters Shipping to the U.S.
The U.S. added tariffs on goods from Canada and other countries in early 2025. These changes were rolled out slowly to give businesses time to get ready. The big shift is the end of the de minimis rule. Before, shipments under $800 could skip duties, fees, and detailed forms. Now, every business shipment—no matter how small—needs formal customs entry, full paperwork, and fees like the Merchandise Processing Fee (MPF, at least $31.67 USD). You also need a 10-digit Harmonized Tariff Schedule of the United States (HTSUS) code on your forms to classify your goods correctly. This applies to all shippers, like Canada Post or UPS. For example, a $50 piece of clothing now requires the HTSUS code, forms, and fees.
The U.S. made these changes for two main reasons:
- Safety and Health: The de minimis rule was used by bad actors to sneak in drugs like fentanyl and fake goods in small packages. Most seized drugs in 2024 came in these low-value shipments. The new rules help with better checks at the border.
- Help U.S. Businesses: Foreign online sellers (like Shein or Temu) had an edge by shipping duty-free, hurting American companies. Now, tariffs (25–50% on non-CUSMA goods) level things out and bring in money for the U.S.
More details are available from U.S. Customs and Border Protection (CBP)
These rules add more forms and costs, like the $31.67 minimum MPF for every package. The changes started August 29, 2025, with a grace period until February 26, 2026, to help you adjust. The upside: Most Indigenous goods can skip high tariffs under CUSMA with good paperwork, including the 10-digit HTSUS code.
This 6-month window until February 26, 2026, lets you get used to the rules without full strict enforcement right away. Use it to set up your shipping. During this time:
- All shipments need detailed forms, like a commercial invoice with the 10-digit HTSUS code and proof of where it’s made.
- Pay fees like the $31.67 minimum MPF.
- Tariffs apply (25–50% if not CUSMA-eligible), but CUSMA can make them zero.
- Shipping might take 3–7 days longer due to checks.
- After February 26, 2026, these are the normal rules. Test your setup now, prove CUSMA eligibility, and budget for extra costs.
Example: For a $75 Indigenous item before: $15 shipping, no fees. Now: Add $31.67 MPF + $20 shipping = $51.67 (plus tariffs if not CUSMA-eligible, like +$26.25 = $77.92
These rules make shipping to the U.S. tougher and pricier, especially for small Indigenous sellers in remote areas. You’ll have less profit per sale because of:
- Extra Costs: At least $31.67 MPF per package, plus higher shipping (~$20 instead of $15). For a $100 necklace: Add $31.67 + $20 = $51.67. If not CUSMA-eligible, add 25–50% tariffs ($25–$50 more).
- More Forms: Every shipment needs details like the 10-digit HTSUS code and origin proof. This takes time, and errors can hold up packages.
- Delays: Missing info means waits of days or weeks, which can upset buyers and hurt sales on sites like Etsy.
- Harder for Small Sellers: With tight budgets and limited access to help or internet, a $50 sale might cost more than you make
Yes, there are ways to lower costs and get support:
- Team Up or Bulk Ship: Join with other sellers for one big shipment to share the $31.67 MPF. Or sell more in Canada while you adjust.
- Prove Canadian Origin: Show your goods are made in Canada to qualify for CUSMA duty-free.
- Government Programs for Funding:
- Indigenous Services Canada (ISC) – Lands and Economic Development Services Program: Grants for export costs like MPF, shipping, or training on HTSUS codes. Example: Cover $500 in fees for several shipments. More at isc.gc.ca.
- Export Development Canada (EDC): Loans, insurance, and advice for exporters.
- Export Guarantee Program: Helps get bank loans for costs like MPF or brokers.
- Trade Impact Program: Financing for fees, shipping, or training (e.g., $20,000 could cover MPF for ~600 shipments).
- Inclusive Trade Investment Program: Equity funding (no quick payback) for growing exporters.
- More at edc.ca.
- CanExport SMEs: Grants for market growth, run by Trade Commissioner Service with EDC support. More at tradecommissioner.gc.ca.
Tips: Use the grace period to try bulk shipping. Get free help from Canadian Council for Indigenous Business (CCIB) or Trade Commissioner Service (TCS), especially for cultural items needing permits. Save receipts for grant applications.
The MPF is a required U.S. CBP fee to cover checks on every business shipment. It applies even if duties are zero under CUSMA. Before the changes, small shipments skipped it; now, all do. Pay it or your package won’t enter the U.S. The 10-digit HTSUS code helps process it right.
It’s 0.3464% of your shipment’s value, but at least $31.67 USD and up to $614.35 (updated yearly). For most Indigenous goods under $9,150, it’s the $31.67 minimum.
Examples:
- $50 item: 0.3464% = $0.17 → Pay $31.67.
- $500 item: $1.73 → Pay $31.67.
- $10,000 item: $34.64 → Pay $34.64.
Pay through Zonos (with Canada Post) or couriers.
- Tariffs (Duties): Taxes on imports, often 25–50% if not CUSMA-eligible. CUSMA can make them zero for Canadian-made goods.
- MPF: A fee for processing, not a tax. It always applies, even for duty-free items.
Note: Gifts might skip MPF, but business sales don’t.
Example: $75 CUSMA-eligible craft: $0 tariffs + $31.67 MPF + shipping.
Yes, under CUSMA if made in Canada with mostly Canadian or North American materials. Examples: Handmade crafts from local materials, or foods like wild rice processed in Canada. If using imported materials, add enough Canadian work to qualify. If not, pay tariffs—raise prices, bulk ship, or use programs from this section.
It’s a note proving your goods are Canadian-made for duty-free entry. Add it to your invoice with:
- Your details, buyer’s details, maker’s details.
- 6-digit HS code (but use full 10-digit HTSUS for U.S. forms).
- Origin rule (A, B, or C based on how it’s made).
- Signature saying it’s true.
Tips: For under $2,500, use a short version. For repeats, a 12-month blanket one. Keep records for checks
You’ll pay tariffs (25–50%) plus MPF and shipping. Example: $100 item = $25–$50 tariffs + $31.67 MPF.
Why? CUSMA needs 60–75% North American content. Imported beads or fabrics might disqualify unless you add lots of Canadian labor.
What to do:
- Raise prices: Sell $100 item for $125 to cover $25 tariff.
- Bulk to U.S. partner: Pay MPF once on a big load (e.g., $5,000 shipment = one $31.67 fee).
- Use programs from question 6.
- Sell elsewhere: More in Canada or to Europe/Asia under other deals.
- Switch materials: Use more Canadian ones for CUSMA.
This helps keep profits, especially for small businesses.
An HS code is a 6-digit number to classify goods worldwide (e.g., 7113.19 for jewelry). For U.S., you need the 10-digit HTSUS version for tariffs and rules. Wrong code = delays or fines.
Find it:
- Start with 6-digit: Use tariffinder.ca by keyword.
- Get 10-digit: hts.usitc.gov search (e.g., “beaded jewelry” → 7113.19.5000).
Help: Ask CBP for a ruling, use a broker, or TCS for free Indigenous support.
Tips: Describe fully, check similar items on CBP’s CROSS database, update yearly.
- Commercial Invoice: Item details (e.g., “handmade cedar carving”), value, quantity, 10-digit HTSUS code, origin (Canada).
- CUSMA Certification: If eligible, on the invoice.
- Carrier Info: Like Declaration ID for Canada Post.
- Permits: For cultural items (e.g., eagle feathers), get from Global Affairs Canada.
It is a good idea to save records 5 years in case of audits:
- Material bills (show Canadian sources).
- Photos/notes on making (prove Canadian work).
- Invoices and CUSMA certs.
- Permits for special items.
- Shipping/fee receipts (for grants).
Digital copies are easy. This avoids fines and helps with funding.
- Get HTSUS Code: Use tariffinder.ca or hts.usitc.gov. Ask Canada Post, broker, or TCS.
- Make Invoice: Item description, value (USD/CAD), quantity, HTSUS code, origin. Add CUSMA if eligible.
- Prove CUSMA: Certification on invoice, keep backups.
- Pay Fees: $31.67 min MPF via Zonos or broker ($50–$200 for complex).
- Pick Shipper: Canada Post/Zonos for small; couriers for fast; cross-border for cheap; U.S. warehouse for bulk.
- Ship: Attach forms/permits, pay, track.
Example: $50 CUSMA item = $31.67 MPF + $20 shipping = $51.67.
Tips: Test during grace period. Get permits early.
For U.S. shipments:
- Invoice: Description (e.g., “Cree beaded moccasins”), value, quantity, 10-digit HTSUS code, origin. Note Indigenous details for CUSMA.
- CUSMA Cert: On invoice if eligible; short for under $2,500; blanket for repeats.
- Declaration ID: 13-char code from Zonos showing fees paid.
- Shipper/Buyer Info: Full addresses, contacts; importer (usually buyer).
- Duty Proof: Show MPF/duties paid via Zonos.
- For Cultural Goods: Extra permits from Canada/U.S.
Submit via SnapShip™ or Shipping Manager. Attach papers. If your information is wrong or incomplete, your product won’t be permitted entry.
Tips: Describe culture for support. Save records for funding. Call 1-866-607-6301.
Zonos handles fees for Canada Post. You need the ID on labels.
Option 1: Prepay App (for rare shippers)
- Download from zonos.com or canadapost.ca (English/French + more).
- Sign up with email/Google/Apple—no business needed.
- Enter item details, value, quantity, HTSUS (app suggests via photo).
- Pay fees (credit/PayPal/etc.).
- Get ID/QR for Canada Post.
- Ship with forms.
Option 2: Verified Account (for regulars)
- Register at zonos.com with Canada Post commercial account (call 1-866-757-5480).
- Link to SnapShip™.
- Use dashboard for codes/fees.
- Zonos pays CBP, bills you.
Tips: AI for codes, confirm with tools. Get TCS for CUSMA. Save receipts. Ask CCAB for setup help.
Many! You are best to pick an option below based on your needs:
- Canada Post + Zonos: Good for small/remote. Pros: Cheap, widespread. Cons: Paperwork errors delay.
- Couriers (UPS/FedEx/DHL): Auto customs. Pros: Fast, reliable. Cons: Costly.
- Cross-Border (Chit Chats/DYK Post): Drop in Canada for U.S. delivery, save 30–50%. Pros: Cheap. Cons: Drop-off spots limited.
- U.S. Warehouses (ShipBob): Store in U.S., ship domestic. Pros: No per-sale customs. Cons: Upfront cost.
Checklist: Include invoice, CUSMA, ID, permits. Save copies, track.
Example: $50 CUSMA item = $31.67 MPF + $20 shipping.
- Learn Codes/CUSMA: Get HTSUS, prove origin to avoid tariffs.
- Bulk/Team: Share MPF with others. Example: $2,000 group shipment = one fee.
- Alternatives: Cross-border for savings; U.S. warehouses for volume.
- Diversify: Sell more in Canada or other countries.
- Talk to Buyers: Explain delays/duties upfront.
Tips: Use grace period to test. Rural? Use co-ops. Keep records. Check canadapost.ca/cbp.gov for updates. Join Indigenous networks.
- CCIB: Free advice/funding links (ccib.ca).
- TCS: Indigenous help on codes/funding/markets (tradecommissioner.gc.ca).
- ISC: Grants for growth (isc.gc.ca).
- EDC: Financing/insurance (edc.ca).
- Global Affairs Canada: Permits (globalaffairs.gc.ca).
- Canada Post: 1-866-607-6301 or canadapost-postescanada.ca.
- CBP: Tools/rulings (cbp.gov).
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