US-Canada Tariffs

US Tariff Update

For now, plants and all CUSMA items have tariff relief (except for autos, steel, aluminum and select consumer products). To find out more about CUSMA compliance this Government of Canada site is the most reliable. Exporters may find that their products can be categorized in more than one HS code and some fall under CUSMA and some don’t. It is recommended to work with a Customs Broker to ensure you are minimizing your tariffs on either side of the border. BCLNA member Pacific Customs Brokers also has a wealth of information on their blog on tariffs and managing your trade with the US.

The BC and Federal Governments are providing tariff guidance, assistance in finding new markets for businesses and supports for workers. Explore BC Trade info and Tariff guidance including finding the tariff classifications. The Government of Canada has a website at tariffinder.ca and has offered a Remission process for Canadian importers impacted by the retaliatory tariffs.

Government of Canada Programs to Assist Companies

The BDC Pivot to Grow Loan provides sectors impacted by tariffs with favourably priced loans up to $2 million.

The EDC Trade Impact Program offers credit insurance to prevent losses from non-payment, options to reduce foreign exchange fluctuation risk, guarantees to help access more working capital, and provides financing for trade.

The Farm Credit Canada Trade Disruption Program defers loan payments, supports loan terms, and provides additional credit up to $500,000 per operation.

The Agristability compensation rate increased from 80% to 90% for growers experiencing a loss of 30% or more due to increased expenses or income declines.
2025 Enrollment Deadline: Extended to April 30, 2025 (also the 2024 late participation & fees deadline).
New Participants: Enroll by July 31, 2025.
Existing Clients: Pay program fee by July 31st with no penalty.
Early Payment: Receive up to 50% of expected final payment through expedited process.

The CRA Tax Relief and Waiver of Interest is available until June 30, 2025.

The Duties Relief Program provides relief from duties on goods that are re-exported.

With the Drawback Program, if goods are re-exported or consumed/expended to eventually be exported (some caveats apply), you may qualify for duty drawback.

Familiarize yourself with the Remissions Process for goods that cannot be sourced domestically or reasonably from non-U.S. sources, or where tariffs would have a severe adverse impact on the Canadian economy.

Tariff Timeline: Key Events in the 2025 North American Trade Dispute

  • February 1, 2025: U.S. President Trump announces sweeping tariffs: 25% on all goods from Mexico and Canada (except a 10% rate on Canadian energy), and a 10% tariff on Chinese imports, with a one-month delay before implementation.
  • March 4, 2025: Tariffs take effect. The U.S. implements the new tariffs on Canadian and Mexican goods. Canada immediately retaliates with 25% tariffs on approximately C$30 billion worth of U.S. goods..
  • March 6, 2025: The Trump administration exempts goods compliant with the Canada-U.S.-Mexico Agreement (USMCA/CUSMA) from tariffs until April 2, 2025.
  • March 13, 2025: The U.S. imposes an additional 25% duty on Canadian steel and aluminum. Canada responds with a matching 25% duty on C$29.8 billion worth of U.S. steel, aluminum, and consumer goods.
  • April 2, 2025: The U.S. Senate votes to repeal the tariffs on Canadian imports. However, some tariff measures and reciprocal actions remain under review.
  • April 3, 2025: The U.S. imposes a 25% tariff on all passenger vehicles and light trucks imported from Canada. For CUSMA-compliant vehicles, only the non-Canadian and non-Mexican content is subject to tariffs.
  • April 9, 2025: Canada retaliates with 25% tariffs on U.S.-made vehicles and auto parts. CUSMA-compliant vehicles are only subject to tariffs on their non-Canadian and non-Mexican content.

For more details, Global Affairs Canada has published a comprehensive resource on these developments.