Canada Tariffs 2026

USMCA-qualifying Canadian goods pay 0% duty and are exempt from the forced-labor Section 301 tariff — unless the product is on a Section 338 list, which adds 50% whether or not it qualifies (in force since 22 August 2026, now 744 tariff lines; 68 of them banned from import since 29 September). Non-qualifying goods pay MFN plus 10% (Canada is in the 10% tier since 24 July 2026). Section 232 applies regardless: steel, aluminum and copper 50% of full value, cars 25% on non-US content, softwood lumber 10% on top of AD/CVD. The 25% IEEPA border tariff was struck down in February 2026.

Since 22 August 2026 the US charges an extra 50% on Canadian goods on three Section 338 lists — 744 tariff lines today — under Section 338 of the Tariff Act of 1930, in response to Canadian measures on US alcohol, dairy and motor vehicles. The lists reach well beyond those sectors: wooden furniture, mattresses, paper, apparel, carpets, smartphones, toys, hockey sticks, cheese and milk powder. On 30 Oct 2026 Proclamation 11076 added 100 lines (carpets, cocoa powder, shampoo, paints, chest freezers and more) and removed 22 (plastic and paper packaging, thin plywood, packing machinery). USMCA does not exempt it, and it is charged on top of Section 232. Check a product at zentriaflow.com/section-338-tariff.

For goods imported on or after 29 September 2026, 68 tariff lines: 53 lines of beer, wine, cider and spirits, 14 lines of whey, molasses and non-alcoholic beer, and motorcycles over 800 cc. For 28 of the alcohol lines the ban covers only product packaged for direct consumption; bulk still enters at the 50% duty.

Yes. USMCA remains in force, with its joint review under way in 2026. Qualifying goods enter at 0% and skip the 10% forced-labor tariff. Section 232 duties and the 50% Section 338 duty on listed goods apply regardless of USMCA.

In February 2025 the administration used IEEPA (Executive Order 14197) to impose 25% on non-USMCA Canadian goods and 10% on energy, citing fentanyl and border concerns. The Supreme Court struck the IEEPA tariffs down on 20 February 2026. A flat 10% Section 122 surcharge applied to non-USMCA goods until 24 July 2026; since then they pay the 10% forced-labor Section 301 tariff.

No. Since 6 April 2026 Canadian steel, aluminum and copper articles pay 50% of their full customs value (25% for derivative articles), with no USMCA exemption — USMCA only lets derivative steel articles exclude their U.S. content. Section 232 goods do not also pay the forced-labor tariff.

Three layers: antidumping duties of 9.65–35.53% and countervailing duties of 12.12–16.82% depending on the exporter (from Commerce's 2025 administrative reviews), plus a 10% Section 232 tariff on softwood lumber since 14 October 2025. Rates are exporter-specific — check your supplier's rate before quoting.

Canadian dairy is subject to tariff-rate quotas under USMCA: in-quota volumes can enter at 0%, over-quota rates are very high (50%+ for some products). Since 22 August 2026 milk powder, lactose, casein and many cheeses also pay the 50% Section 338 duty, and whey (0404.10) has been banned from import since 29 September 2026. Non-qualifying dairy also pays the 10% forced-labor tariff.