The Trade Commissioner Service (TCS), alongside our partners, is working to help Canadian businesses navigate disruptions caused by the various tariffs imposed by the United States (U.S.).
U.S. tariffs: On February 24, 2026, the U.S. imposed global 10% tariffs under Section 122 of the Trade Act of 1974, replacing the tariffs imposed under the International Economic Emergency Powers Act (IEEPA) that were ruled invalid by the U.S. Supreme Court.
Canadian (and Mexican) exports of CUSMA-compliant goods (i.e., goods that qualify for preferential duty-free treatment under CUSMA) are exempt from the 10% Section 122 tariff (in the same way CUSMA-compliant goods were exempt from IEEPA tariffs). A wide range of other goods are fully exempt from the Section 122 tariffs, regardless of CUSMA compliance status, including critical minerals, energy products, certain natural resources and fertilizers, certain agricultural products, certain pharmaceuticals, certain electronics, nearly all civil aircraft products, and goods subject to Section 232 tariffs.
Section 122 authorizes the President to impose tariffs for a maximum of 150 days, unless extended by an Act of Congress.
U.S. sectoral tariffs: The U.S. maintains following global sectoral tariffs under Section 232 (S. 232) of the Trade Expansion Act of 1962 on imports, including from Canada:
- 15% to 50% tariffs on steel, aluminum, and copper (including derivative products): As of April 6, 2026, goods within the scope of Section 232 steel, aluminum, and copper tariffs are subject to a tariff rate ranging from 15% to 50% on their full value, rather than a 50% tariff on their steel, aluminum, and copper content. Goods that contain less than 15% of applicable metal content (steel, aluminum, and/or copper) by weight are exempt. Goods that are composed of at least 85% U.S. steel, aluminum, and/or copper content are subject to a reduced tariff of 10%.
- 25% tariffs on autos and trucks (and their parts): The values of U.S. content in CUSMA compliant autos and trucks is exempt from the 25% tariffs (subject to the approval of the Secretary of Commerce on a model-by-model basis). CUSMA compliant auto and truck parts are not subject to 25% tariffs until the Department of Commerce establishes a process to apply the tariffs exclusively to the non-U.S. content of auto and truck parts.
- 10% tariffs on buses: There is no CUSMA compliant or U.S. content exemption from the 10% tariff on imports of buses.
- 10% tariffs on softwood timber and lumber: There is no CUSMA compliant exemption from Section 232 tariffs on softwood timber and lumber.
- 25% tariffs on certain upholstered furniture and kitchen cabinets and vanities: There is no CUSMA compliant exemption from Section 232 tariffs on certain upholstered furniture and kitchen cabinets and vanities. On January 1, 2027, the tariff on certain upholstered furniture is scheduled to increase to 30%, and the tariff on kitchen cabinets and vanities is scheduled to increase to 50%.
- 25% tariffs on certain semiconductors: The 25% tariff applies to a small subset of imports of certain semiconductors and derivative products. Goods used in domestic production and for other specified domestic purposes, including in U.S. data centres, research and development, and certain non-data-centre consumer and civil industrial applications, are exempt.
