Canada Tariffs 2026: USMCA Import Duty Guide
Canada is the second-largest source of US imports, after Mexico. Under USMCA, most Canadian products enter duty-free or at reduced rates. However, softwood lumber remains a contentious category with additional duties, and a few other sectors face restrictions.
This guide explains USMCA treatment for Canadian goods, softwood lumber tariffs, and how to verify rates for your specific products.
USMCA Duty-Free Treatment
Canada benefits from broad USMCA coverage. Most manufactured goods, minerals, and energy products enter at 0% tariff with a valid Certificate of Origin:
| Product Category | USMCA Rate | MFN Rate (if applicable) | Notes |
|---|---|---|---|
| Machinery & Electronics | 0% | 0-3% | Broad coverage with USMCA |
| Automotive & Parts | 0% | 2.5-25% | Rules of origin apply (75% North American content) |
| Chemicals & Plastics | 0% | 0-8% | Most qualify duty-free |
| Oil & Natural Gas | 0% | 0-1% | Primarily duty-free already |
| Minerals & Metals (excl. softwood lumber) | 0% | 0-5% | Broadly duty-free |
| Softwood Lumber | 0% + additional duties | N/A | See section below |
Softwood Lumber Tariffs (Critical)
Softwood lumber is the single most contentious Canadian import. Despite USMCA, US policy imposes additional duties on Canadian lumber through:
Countervailing Duty (CVD)
The US Department of Commerce maintains a countervailing duty on Canadian softwood lumber, claiming unfair subsidies by Canadian provinces. Current rates (2026):
- Canfor Corporation: 16.4% CVD
- Sof-Wood: 2.95% CVD
- Other Canadian producers: 12-16% CVD (varies by company)
- Canada-wide rate: Approximately 9-16% effective CVD
Anti-Dumping Duty (AD)
An anti-dumping duty is also assessed, claiming Canadian lumber is sold below fair value. Current rates:
- Typical anti-dumping rate: 2-5% depending on producer and lumber grade
Total Softwood Lumber Duty
When combined, Canadian softwood lumber faces:
- Typical combined duty: 12-22% (CVD + AD)
- USMCA benefit: USMCA does NOT eliminate these duties; they apply regardless
- Plus surcharge: The February 2026 import surcharge adds an additional ~2-4%
- Total effective rate: 14-26% for most Canadian softwood lumber
Implications: Despite USMCA duty-free status on paper, Canadian lumber faces substantial duties. This is a major point of contention in US-Canada trade relations and is actively being negotiated.
HTS Codes for Softwood Lumber
- HTS 4407: Softwood sawn or chipped lengthwise
- HTS 4408: Softwood veneer sheets
- HTS 4409: Softwood plywood and other plywood
- HTS 4410: Particleboard and similar products
- HTS 4411: Fiberboard of wood pulp
Key Trade Categories
Automotive & Parts
Canada is the largest source of auto parts and finished vehicles. USMCA provides duty-free treatment with rules of origin:
- Finished vehicles: 0% USMCA (typically 2.5% MFN)
- Auto parts: 0% USMCA when rules of origin met
- Regional value content requirement: 75% North American (US, Mexico, Canada)
- Labor wage requirement: 40% of direct labor must be $16/hour+ (as of 2026)
Energy (Oil, Natural Gas, Electricity)
- Crude oil: 0% (duty-free already)
- Refined petroleum: 0-2.5% USMCA
- Natural gas (LNG): 0% USMCA
- Electricity: 0% under USMCA
- Coal: 0% (broadly duty-free)
Minerals & Metals
- Iron ore and concentrates: 0%
- Copper ore and refined: 0%
- Nickel: 0%
- Aluminum (primary): 0% USMCA (Section 232 duty may apply)
- Steel: 0% USMCA (Section 232 duty applies separately)
Aluminum & Section 232
Like Mexico, Canadian aluminum faces Section 232 national security duties even with USMCA duty-free classification:
- Primary aluminum: 0% USMCA tariff + 10% Section 232 duty
- Aluminum alloys: 0% USMCA tariff + 10% Section 232 duty
- Finished aluminum products: 0% USMCA + Section 232 depending on form
Agricultural Products
- Pork & beef: 0% USMCA (quota restrictions may apply)
- Dairy products: Tariff-rate quotas (TRQ) apply; excess faces 20-35% tariff
- Grains & oilseeds: 0% broadly
- Maple syrup: 0% USMCA
- Potatoes & vegetables: Seasonal restrictions apply
Certificate of Origin
To claim USMCA duty-free treatment on Canadian products, a valid Certificate of Origin must accompany the shipment. This form (CUSMA/USMCA CO) certifies:
- Product qualifies for USMCA treatment
- Product meets rules of origin
- Canadian customs verification
Without a Certificate of Origin: Products are assessed standard MFN rates, which can be 3-15% higher than USMCA rates.
Look Up Canada Tariff Rates
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Search HTS Codes NowFAQ: Canada Tariffs & USMCA 2026
Almost all do, except softwood lumber (which faces CVD and anti-dumping duties regardless) and a few agricultural items with quota restrictions. Most manufactured goods, minerals, and energy products qualify duty-free with a Certificate of Origin.
Softwood lumber duties (CVD and anti-dumping) are maintained under separate US trade remedy laws, not the tariff schedule. USMCA provides 0% tariff, but these additional duties are assessment separately. This is a major ongoing trade dispute.
Approximately 12-22% combined (CVD 9-16% + AD 2-5%) plus the February 2026 import surcharge (~2-4%). Total effective: 14-26% depending on producer.
Yes. Even though aluminum is USMCA duty-free (0% tariff), Section 232 national security duties apply on top (typically 10% on primary aluminum). These duties are not waived by USMCA.
Your Canadian supplier must provide a CUSMA/USMCA Certificate of Origin. Present this to US Customs when the shipment arrives. Without it, standard MFN rates apply.
Partially. USMCA provides lower rates on dairy, but tariff-rate quotas (TRQ) limit duty-free quantities. Excess quantities face tariffs of 20-35%. Check current TRQ status with Customs.