As 2026 brings new compliance challenges and opportunities, Baker McKenzie’s Canadian international trade team is here to help you stay ahead. We are launching our annual series of insights that unpack 2025’s biggest developments and spotlight the trade issues set to define 2026, bringing the clarity needed to navigate the evolving trade landscape.
This article focuses on Canadian customs.
The year ahead promises more challenges for Canadian importers and exporters, as the landscape of surtaxes and TRQs applicable to imported goods continues to expand. The Canadian International Trade Tribunal’s (CITT) recent initiation of a safeguard inquiry on certain vegetable products, and the possibility of an additional safeguard proceeding on wood products has the potential to introduce further complexity to Canada’s import regime, and will apply additional pressure on importers and downstream purchasers of these products. Importers also faced enhanced verification scrutiny, with the CBSA amping up verifications on surtax compliance, imports of supply managed goods and origin verifications. The CBSA has announced revisions to the amendments first proposed in 2023 on the application of transaction value method under Canada’s Valuation for Duty Regulations. Should the amendments enter into force as drafted, the revisions will fundamentally change the valuation landscape for certain importers, necessitating an internal review of valuation methodologies, and the possibility of seeking rulings for the sake of clarity.
Finally, the 2026 USMCA review is more than a routine check—it’s a pivotal moment for North American trade relations. Canada is pushing to lock in stability while pressing for tariff relief south of the border. In the months ahead, we expect to see Canada continuing to shore up support from Mexico to improve its bargaining position and to continue securing foreign investment and exploring FTAs in order to diversify export markets for Canadian goods. These initiatives may help provide leverage to Canada during the review, knowing that a tariff-free US market is an impossible outcome.
Canada-US trading relationship
Since Canada floated a July 2025 deadline to negotiate a new trade and security deal with the US, no agreement has been inked. Canadian origin non-USMCA qualifying goods were subject to 35% tariffs until SCOTUS held tariffs implemented under the IEEPA to be invalid (we write about it here). However, now Canadian origin non-USMCA qualify goods are subject to 10% tariffs under section 122 of the Trade Act of 1974, which authorizes temporary import surcharges of up to 15% for 150 days to address “large and serious” US balance-of payments deficits. These tariffs are set to expire on July 24, 2026, unless Congress votes to extend them. The US Administration has threatened to increase the tariff to 15%, but has not yet taken official action to do so. A number of lawsuits are challenging the legality of these tariffs.
To date, several states have challenged the tariffs. The section 122 tariffs apply in addition to other customs duties, except the section 232 measures that continue to apply to Canadian auto, steel, aluminium, copper, lumber, furniture and cabinet exports to the US (see a summary of current Canada-US tariffs in Annex A). In circumstances where a section 232 tariff only applies to a “part” of a product, the 15% tariff applies to the remaining non-232 “part”. Last fall a rumored sectoral deal on US section 232 tariffs targeting Canadian steel and aluminium did not come to fruition. Canada maintains a 25% surtax on US origin steel, aluminum and autos, but dropped a 25% surtax applicable to other US origin goods as of September 1, 2025. The full list of US origin goods currently subject to a 25% surtax by Canada are listed here. We outline the current surtaxes/tariffs in force for imports into the US and Canada, and the available Canadian remission processes in Annex A.
Canadian businesses importing into the US are closely following the administrative efforts by the US CBP to implement an electronic automatic IEEPA refund process (our latest update is here). CBP is developing a new program within ACE to prepare, calculate and provide refunds of IEEPA duties, named the “Consolidated Administration and Processing of Entries” (CAPE).
USMCA review
For the first time in several months, Canada’s US-Canada Trade Minister was in Washington on March 6, 2025 to reignite bilateral trade talks as the July 1, 2026 deadline to renew the USMCA looms. While making significant concessions to the US (e.g. terminating the implementation of a digital services tax, removing retaliatory tariffs on the vast majority of US origin goods, committing funds to border security, withdrawing appeals related to US duties on softwood lumber, and certifying US-manufactured aircraft), Canada has continued to shore-up support from Mexico to avoid a repeat of 2018/2019 where a US-Mexico bilateral negotiation allowed these parties to reach agreement prior to Canada. Canada also seeks to create leverage by ushering in strategic partnerships, bilateral investment treaties, executing FTAs and proposing new FTAs with other trading partners, discussed in detail below.
The aim of the USMCA review is to determine whether the parties wish to extend the FTA for another 16-year term as-is, and/or to amend the text to address the FTA’s operation and application. If the parties fail to reach an agreement on extending the FTA prior to July 1, 2026, the FTA will terminate in 2036 after a decade of annual joint reviews (allowing for a subsequent extension of the FTA). The USMCA also provides for unilateral withdrawal with 6 months’ notice. While the outcome of the review remains uncertain, it remains clear that the USMCA will be amended before it is renewed. US Trade Representative, Jameson Greer has hypothesized separate protocols with Canada and Mexico that are “tacked” on to the USMCA to resolve bilateral issues. This would be a similar approach to the side letters entered into between the parties to resolve, for example, the first iteration of s. 232 tariffs on steel and aluminium in 2018/2019.
In the fall Canada, the US and Mexico all initiated public consultations. While Canada has not made the submissions publicly available, it has published a summary of these comments. Canadians want the USMCA to survive to ensure that duty free access to the US market remains. Canadians want predictability, stability and regulatory alignment perhaps a difficult aim to achieve in the current environment. And Canadians stand behind supply management, wanting to continue to protect access to the Canadian dairy, poultry and egg markets. It remains an open question as to what further concessions Canada is prepared to make in order to advance the review. Canada may increase TRQ volumes for US dairy, or address the historical US concerns regarding the allocation of TRQs, which has been the subject of two Chapter 31 panel disputes. Finally, the US initiation of a section 301 investigation on forced labour that targets several countries, including Canada (we write about it here), may finally prompt Canada to table legislation implementing a re-export ban or a rebuttable presumption that certain goods are mined/manufactured with forced or child labour.
You can follow Baker McKenize’s USMCA/CUSMA/T-MEC 2026 Review Blog series here.
Proposed amendments to the Valuation for Duty Regulations
Amendments to the CBSA’s Valuation for Duty Regulations first proposed, and subject to public consultation, in May 2023 continue to hang in the balance (Amendments). In December 2025, the CBSA released a summary of proposed revisions to the Amendments (Revisions), open for consultation with stakeholders until January 23, 2026 (2025 Consultation). In 2023, we wrote about the Amendments in detail here and in December, we wrote about the 2025 Consultation here. While the CBSA has not followed the typical legislative process for amending regulations, and has not made available the legislative text of the Revisions to the Amendments, the text has circulated publicly and the CBSA may still publish the revisions for proper consultation in Part II of the Canada Gazette.
The Amendments amend the methodology for declaring goods using the transaction value method, proposing a “last sale” approach to customs valuation. This has the potential to increase the declared value for duty of imported goods, directly increasing duties and taxes owing, and indirectly increasing the cost of doing business in Canada. In response to importer concerns that the Amendments might capture domestic sales as the proper sale for customs valuation purposes, the CBSA has revised the Amendments to exempt sales between two persons who are each either an individual residing in Canada or an entity that meets a list of 8 conjunctive criteria demonstrating it has a “substantial presence” in Canada (we write about them here).
Importers valuing goods using the transaction value method should continue to watch both Part I (should regulations be subject to further consultation) and Part II (should the regulations be in final form) of the Canada Gazette for publication of the Amendments and any new or revised D-memoranda and Customs Notices advising of their interpretation and coming into force date. Now that the dust has settled on CARM implementation and Canada has removed the majority of its retaliatory tariffs, the CBSA may have regulatory and enforcement capacity to undertake this significant about-face on valuation.
Canada-China trading relationship
We predicted a reset of China-Canada relations in our Q4 update, which culminated in Canada and China announcing a Strategic Partnership in January 2026. We write about it here. The terms of the partnership included China committing to a 15% tariff rate on imports of Canadian origin canola seed and removing anti-discrimination tariffs on Canadian origin goods until December 31, 2026. Canada extended remission to certain Chinese steel, aluminium products subject to a 25% surtax until December 31, 2026 and is permitting the import of 49,000 Chinese EVs at an MFN rate of 6.1%, subject to a TRQ permitting process. The Customs Notice outlining the permit process is available here and Global Affairs Canada’s Import Control Notice is here.
In following through on its commitments, on February 28, 2026, China concluded its anti-dumping investigation on Canadian origin canola seed with a 5.9% anti-dumping duty, coupled with a 9% MFN tariff rate, for a total of 14.9% duties on applicable imports. This new chapter in the Canada-China relationship opens up investment opportunities for Chinese EV manufacturers in Canada, and reopens an important market for Canadian agricultural exports.
We outline the current surtaxes/tariffs in force for Chinese origin goods imported into Canada, and the available Canadian remission processes in Annex B.
Vegetable products safeguard inquiry
On March 16, 2026, the CITT initiated a safeguard inquiry into vegetable goods classified under several tariff items under Headings 7.10 and 20.05. Fresh or dried vegetables, ready-to-eat meals and vegetables altered into purees, powders, juices, spreads dips or pastes are excluded from the investigation.
The CITT has been given 180 days to investigate and provide findings and recommendations to the federal government. A recommendation is due by September 9, 2026. The investigation schedule is available here. Importer, foreign producer, union, and domestic producer questionnaires are available here (due April 10, 2026). Notices of participation are due by April 2, 2026. A hearing is scheduled for June 15, 2026. The CITT will use this hearing to clarify evidence and witnesses will be selected by the Tribunal by interest parties whom have filed witness statement.
Importers and foreign producers should review the questionnaire and consider participating in the proceeding in order to secure their supply chains, which might face surtaxes or a TRQ regime should the CITT making a finding of serious injury/threat of serious injury. We write about the inquiry here.
CBSA trade verification and compliance priorities
In early January, the CBSA announced its trade verification priorities and its compliance priorities for 2026. The priorities provide notice to Canadian importers of the products and programs within the CBSA’s compliance crosshairs and are typically updated in January and July of each year. Several products are subject to the CBSA’s 2026 trade verification priorities for their 2nd and 3rd round. There are no priorities listed for valuation or origin; however, Canadian importers continue to receive trade compliance verifications on these matters as part of the CBSA’s general compliance function. Tariff classification priorities are as follows:
- Gloves (round 3) – Headings 39.26 and 42.03
- Bags (Round 3) – Headings 42.02
- LED lamps (Round 2) – Heading 85.39
- Frozen desserts – Tariff item 2105.00.10 (see below Compliance Priority)
- Spent fowl – Heading 02.07, 16.01, 16.02 (see below Compliance Priority)
- China Surtax Order: Electric vehicles
- China Surtax Order (2024): Steel and aluminum
- US Surtax Order (2025-01)
- US Surtax Order (Steel and Aluminum 2025)
The CBSA first introduced “compliance priorities” in 2024. The updated compliance priorities for 2026 are as follows:
| Priority | Reasons & Importer Risk |
| Classification of supply managed goods (frozen desserts containing 5% of dairy products, cheese treats for dogs), spent fowl. | Dairy and poultry products are supply-managed in Canada and are subject to import controls. Importing misclassified goods containing dairy products or misclassified poultry products without a quota allocation and an import permit, may result in an “over-access commitment” tariff classification, which is subject to high duties (e.g. up to 300%). |
| GST and excise duties (GST exemption codes, vaping products, precious metals) | The CBSA seeks to verify compliance with GST exemption codes, ensuring that importers are not underpaying taxes by relying on exemption codes for ineligible goods. The CBSA collects GST (Canada’s 5% VAT) on imported goods and remits these amounts to the Canada Revenue Agency. Importers are obligated to record GST rates or the applicable exemption code in Field No. 29 of a Canada Customs Form B3 (soon to be the “Commercial Accounting Document” under the new CARM Portal). The applicable GST exemption codes are listed in CBSA policy for certain goods as prescribed under the Excise Tax Act. The CBSA is also conducting verifications of vaping products, which are subject to both excise duties and taxes. Increases to the existing excise tax on vaping products, announced in the 2024 Federal Budget, took effect on July 1, 2024. Scrutiny of GST exemption codes and excise taxes may result in duty and tax liability for importers. We expect the focus on precious metals concerns whether imports are properly meeting GST exemptions for certain purity levels. |
| Import origin verifications under the Canada-European Union Comprehensive Economic and Trade Agreement and the Canada-United Kingdom Trade Continuity Agreement | The CBSA has proposed origin-related verifications in relation to goods relying on preferential tariff treatment under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Canada-United Kingdom Trade Continuity Agreement. Importers relying on preferential tariff treatments available under Canada’s FTAs must ensure that the goods at issue meet the rules of origin under the applicable FTA. Importers of commercial goods are also required to furnish certificates of origin to the CBSA to support an origin declaration. Importers who fail to properly assess the origin of imported goods, or do not have the requisite supporting documentation, risk the CBSA withdrawing preferential tariff treatment and re-determining duties and taxes owing in respect of the non-originating goods at a higher duty rate. For example, goods that are determined to be non-originating under the CETA will be subject to most-favoured nation (MFN) tariff treatment. |
| CUSMA origin verifications (automotive industry) | The CBSA will be conducting origin verifications on automotive goods imported with CUSMA tariff treatment to assess compliance with Canada’s shifting surtaxes throughout 2025. Canada imposed a surtax effective April 9, 2025 with a partial carve-out for CUSMA-compliant content. Non-CUSMA compliant vehicles were charged a 25% surtax on the full value of the import. CUSMA-compliance vehicles were charged a 25% surtax only on the non-Canada/non-Mexican content. Certain auto parts were also captured in the United States Surtax Order (2025-01) effective March 4, 2025. As of September 1, 2025, Canada removed surtaxes on most US origin goods, including most auto parts, regardless of their CUSMA status, except for certain motor vehicles. |
| Verifications of licensees importing supply managed goods in reliance on the Duties Relief Program | The CBSA will be conducting verifications of licensees importing supply-managed goods under the Duties Relief Program (DRP), which relieves payment of duties at the time of import for goods that will be exported either in the same condition or after being consumed, expended or used in the processing of other goods. This compliance priority, coupled with the proposed verification of tariff classification of frozen desserts, signals a renewed enforcement effort by the CBSA to prevent spillage (e.g. DRP-imported goods entering Canadian dairy, poultry, and egg markets instead of being re-exported) within Canada’s tightly controlled supply management regime. This renewed enforcement comes at a time when Canada has expanded access to the Canadian dairy, poultry and egg markets through concessions to member states in FTAs (e.g. the USMCA and the CPTPP). |
| Surtax compliance | The CBSA is assessing compliance by Canadian importers with new surtaxes implemented against China and the United States. Surtax verification may take the form of a tariff classification verification, an origin verification, or an assessment of whether the surtax was properly applied if the classification and origin are otherwise correct. The CBSA is assessing compliance with the following surtax orders: China Surtax Order (2024): Electric vehicles China Surtax Order (2024): Steel and Aluminium United States Surtax Order (2025-01) United States Surtax Order (Steel and Aluminium 2025) United States Surtax Order (Motor Vehicles 2025) Order imposting a Surax on the importation of Certain Steel Goods Steel Goods and Aluminum Goods Surtax Order Steel Derivative Goods Surtax Order |
| Energy commodities and final accounting | The CBSA is conducting verifications on electricity imports under Chapter 27 of the Customs Tariff. |
Free Trade Agreements and Investment Protection Agreements
As Canada’s trading relationship with the United States remains fractured, it has doubled down on recent efforts to increase Canada’s non-US exports over the next decade by diversifying its trading relationships. Canada is seeking free trade agreements (FTA) with new partners to support stability and predictability and to provide new markets for Canadian exports. Canada is also seeking bilateral investment treaties (referred to as Foreign Investment Promotion and Protection Agreements, FIPAs) to increase foreign direct investment into Canada, signalling to foreign investors that their assets will be protected from political and regulatory risks. Finally, Canada is engaging with its existing FTA partners, like Korea, to establish continued economic integration through MOUs. A few highlights on Canada’s recent progress on diversifying its trading and investment relationships is outlined below. Businesses planning supply chains for 2026 and beyond, or seeking investment for new or ongoing projects should review the expansion of existing FTAs, ongoing FTA/FIPA negotiations, new FTAs, and new FIPAs.
Expanding existing FTAs and trading relationships
CPTPP: Accession negotiations continue with Costa Rica. China, Ecuador, Indonesia, the Philippines, Taiwan, Ukraine, the United Arab Emirates, and Uruguay have also applied for accession. The Government has committed to commence implementation of the United Kingdom’s Protocol of Accession. The Protocol has entered into force for the UK, Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, Vietnam, and Australia. The Protocol was tabled in Parliament on September 18, 2025.
EU Digital Trade: In 2025, Canada and the EU prepared groundwork for launching negotiations on a digital trade agreement (DTA) and preliminary discussions began in February 2026. While the CETA has remained provisionally in force for 9 years, a number of EU member states have yet to ratify the agreement. Despite domestic political road bumps, the EU and Canada launched negotiations towards a DTA to establish a safe online environment, provide legal certainty for businesses, and to promote fair digital trade.
Canada-Korea MOU: In January 2026, Canada and Korea signed an MOU to deepen bilateral cooperation in automotive and EV manufacturing, battery supply chains, critical minerals, and artificial intelligence. This MOU seeks to further embed Korean investment in Canada’s EV supply chain, from batteries to the possibility of Korean automotive manufacturing in Canada.
Ongoing FTA/FIPA negotiations
India: Canada and India recently announced a package of trade‑focused outcomes, including the finalization of terms of reference for negotiations toward a Comprehensive Economic Partnership Agreement (i.e. an FTA), with an expressed objective of more than doubling bilateral trade to CAD $50–70 billion by 2030. The leaders also unveiled several sector‑specific arrangements of direct relevance to Canadian businesses, notably a CAD $2.6‑billion long‑term uranium supply agreement and enhanced cooperation on critical minerals and clean energy. The Government of Canada has published its negotiating objectives for the CEPA, emphasizing market access, regulatory transparency, and protections for domestic policy space, which will be central issues to watch as formal negotiations progress through 2026.
ASEAN: In 2021, Canada and ASEAN member states (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) commenced FTA negotiations. An FTA would provide Canada with market access to Thailand and the Philippines. A loose agreement to substantially conclude negotiations in 2025 has not come to fruition, while Canada continues to explore a bilateral FTA with the Philippines and Thailand.
Saudi Arabia: Formal negotiations for a FIPA commenced in November 2025. The agreement will be based on Canada’s 2021 model FIPA, seeking to provide protections against expropriation, non-discrimination, capital transfer, and access to investor-state dispute settlement.
Qatar: In January 2026, Canada and Qatar announced their intention to finalize a FIPA by summer 2026. On-again-off-again negotiations on a FIPA have continued since 2018; however, Qatar has recently pledged investments in Canadian infrastructure as Canada seeks to kick start its economy through the Prime Minister’s Major Projects Office.
UAE: In November 2025, Canada and the UAE announced negotiations towards a Canada–UAE Comprehensive Economic Partnership Agreement (i.e. an FTA) and a public consultation on same closed in January 2026. Negotiations are reportedly underway.
MECROSUR: FTA negotiations were initially launched in March 2018; however, after 7 rounds of discussions, negotiations paused. In 2025, Brazil (holding Mercosur’s rotating presidency) expressed an interest in resuming negotiations and Canada then held public consultations to inform its negotiating position. Whether an agreement will be reached in 2026 largely depends on Canada’s positions on agricultural market access, among other issues.
New FTAs/FIPAs
UAE: In November 2025, Canada and the UAE signed a FIPA, negotiations on which had been underway since 2016. The FIPA is not yet in force as the parties continue their domestic ratification processes. In Canada this means tabling the FIPA in Parliament, completing its review and preparing any necessary Ordes in Council. The FIPA is based on Canada’s 2021 model FIPA, including protections against expropriations, fair and equitable treatment, national-treatment, dispute settlement, and MFN obligations. The UAE has committed to significant strategic investments in Canada.
Indonesia: Canada’s first bilateral FTA with an ASEAN nation – Indonesia – will enter into force in 2026. This agreement will terminate or reduce tariffs immediately, or over a 15-year period, on over 95% of Canadian exports to Indonesia including on agricultural and seafood products, wood, pulp and paper and chemicals. See pg. 21 of the FTA text for staging categories, pg. 25 for Canada’s tariff schedule and pg. 266 for Indonesia’s tariff schedule. The House of Commons recently passed implementing legislation and the legislation is in its second reading before the Senate.
Ecuador: Canada-Ecuador FTA negotiations concluded in 2025 and remains in the legal scrubbing, translation and ratification phase. Implementing legislation has not yet be tabled for approval by Parliament. Ratification by Canada and Ecuador may occur in late 2026 or early 2027.
Protectionist Steel Measures
While Canadian steel importers face further hurdles to sourcing foreign origin steel, Canadian steel producers continue to benefit from added domestic trade protections. Over summer 2025, Canada announced the creation of a government-stakeholder task force on steel to monitor trade and market trends to support government decision making and TRQs on ROW steel imports. Since August 1, 2025 a 50% surtax has applied to ROW steel imports, with the exception of steel originating in Mexico and the United States, that exceed a country-specific TRQ and where importers fail to obtain a shipment-specific import permit.
In order to avoid the 50% surtax, importers must ensure adequate quota remains for the specific steel product (by HS Code and by country of origin) and must obtain a shipment-specific import permit issued by Global Affairs Canada. Amended measures, took effect on December 26, 2025, to reduce the volumes of the TRQs for goods originating from non-CUSMA FTA and non-FTA partners. The third quarter of the surtax ends on March 25, 2026. The Notice to Importers provides all relevant details on the administration of the TRQs.
Surtaxes on US origin steel (see Annex A) and Chinese origin steel (see Annex B) remain in force. Steel protections expanded in December 2025, when the Government introduced a surtax on derivative steel products. This surtax aims to add another layer of protection to domestic steel producers, ensuring downstream demand by manufacturers of derivative steel products remains strong. While certain remissions remain available, Finance Canada is also reviewing case-by-case requests for remission.
Despite a number of these measures providing overlapping protection for the domestic steel industry, Canada has confirmed that its surtaxes on over-quota non-USMCA origin steel, US origin steel, Chinese origin steel, Chinese melted/poured steel, and derivative steel products are non-stackable. Only one surtax will apply at the time of importation based on the following hierarchy:
- Surtax on steel imports over the established tariff rate quotas for non-USMCA countries.
- Either: a) surtax on US origin steel products; b) surtax on Chinese origin steel products; or c) surtax on non-US origin imports that contain steel melted and poured in China.
- Surtax on steel derivative products from all countries.
In addition to introducing TRQs and surtaxes, in late 2025, Canada announced enhanced CBSA protocols to identify and eliminate steel import non-compliance. These measures include: operating an online tip portal for import non-compliance, partnering with the Canadian Steel Producers Association to train officers on manufacturing developments to support effective enforcement, instructing the CBSA’s Market Watch Unit (currently responsible for initiating administrative reviews to update normal values) to focus on market prices, and establishing a dedicated steel trade compliance team for enforcement purposes.
Annex A – Canada-US Tariffs Summary
| Implementing Country | Current Target Goods | Current Tariff Rate | Effective Date/ Termination Date | Canadian Remission Process |
| US | Canadian origin goods, excluding USMCA qualifying goods (IEEPA). | 35% (Canadian origin goods) 10% (energy products and potash) | Effective: March 4, 2025* Terminated: February 20, 2026 (declared invalid by SCOTUS) | N/A |
| Canada | US origin goods, as specified by HS Code Order in Council | 25% | Effective: March 4, 2025** Terminated: September 1, 2025 | Self-assessment remission process available, administered by CBSA and application based remission process available, administered by Finance Canada. Order in Council Customs Notice Finance Canada |
| US | ROW steel and aluminum goods and derivative products. Exceptions for derivatives processed abroad from steel melted and poured or aluminium smelted and cast in the US (Section 232) | 50% | March 12, 2025 | N/A |
| Canada | US origin steel and aluminium as specified by HS Code. Order in Council | 25% | March 13, 2025** | Self-assessment remission process available, administered by CBSA and application based remission process available, administered by Finance Canada. Order in Council Customs Notice Finance Canada |
| US | ROW automobiles, light trucks and parts, exempting US content in CUSMA-compliant vehicles (Section 232) | 25% | April 3, 2025 (autos) May 3, 2205 (parts) | N/A |
| Canada | Non-CUSMA compliant US origin automobiles, as specified by HS Codes Order in Council | 25% | April 9, 2025 | Remission available for auto producers that incentivizes production and investment in Canada. Order in Council Customs Notice |
| US | ROW semi-finished copper products and derivatives (Section 232) | 50% (on copper content) | August 1, 2025 | N/A |
| US | ROW timber (logs) and softwood lumber (Section 232) | 10% | October 14, 2025 | N/A |
| US | ROW upholstered wooden furniture, kitchen cabinets and vanities (Section 232) | 25% 25% (cabinets and vanities)*** | October 14, 2025 | N/A |
| US | ROW medium and heavy-duty trucks, parts and buses (excluding USMCA content) (Section 232) | 25% (trucks) 10% (buses) | November 1, 2025 | N/A |
| Canada | ROW derivative steel products as specified by HS Code Order in Council Customs Notice | 25% | December 26, 2025 | Self-assessment remission process available, administered by CBSA and application based remission process available, administered by Finance Canada. Order in Council Customs Notice Finance Canada |
| US | ROW goods, excluding USMCA qualifying goods (Section 122, Trade Act of 1974) | 10% | Effective: February 24, 2025 Terminates: July 25, 2026 | N/A |
* On August 1, 2024, the tariff rate increased on Canadian goods from 25% to 35%, and the US introduced a 40% tariff on goods transhipped in order to evade tariffs.
**Retaliatory tariffs on certain goods applicable as of March 13, 2025 were repealed on September 1, 2025.
***Tariffs on upholstered furniture and kitchen cabinets and vanities to increase to 30% and 50%, respectively, on January 1, 2027.
Annex B – Summary of Canadian Surtaxes Applicable to Chinese Origin Goods
| Current Target Goods | Tariff Rate | Effective Date/Termination Date | TRQ/ Canadian Remission Process |
| Chinese origin steel and aluminium products as specified by HS Code | 25% | October 24, 2024 Order in Council Customs Notice | Self-assessment remission process available, administered by CBSA (terminates December 31, 2026) and application based remission process available, administered by Finance Canada. China Surtax Remission Order (2024) Customs Notice |
| Steel melted and poured in China Aluminium smelt and cast in China | 25% | July 31, 2025 Order in Council Customs Notice | Self-assessment remission process available, administered by CBSA (terminates December 31, 2026). China Surtax Remission Order (2024) Customs Notice |
| ROW derivative steel products as specified by HS Code | 25% | December 26, 2025 Order in Council Customs Notice | Self-assessment remission process available, administered by CBSA and application based remission process available, administered by Finance Canada. Order in Council Customs Notice Finance Canada |
| Chinese origin electric vehicles as specified by HS Code | 100% | Effective: October 1, 2024 Terminated: March 1, 2026 Order in Council Customs Notice | As of March 1, 2026, Chinese origin EVs are listed on the Import Control List and require shipment-specific import permits prior to import, administered by Global Affairs Canada. Customs Notice Notice to Importers |
