🇨🇦 Canada vs 🇨🇳 China Tariffs — Import Duty Comparison (2026)

🇨🇦

Canada

Section 122 Rate10%

Section 301N/A

Section 232 (Metals)50%

Trade AgreementUSMCA

Trade Volume$783B

Base Effective Rate10%

🇨🇳

China

Section 122 Rate10%

Section 30125-100%

Section 232 (Metals)50%

Trade AgreementNone

Trade Volume$575B

Base Effective Rate35%

Product Overlap

Both countries export these product categories to the US:

MachineryPlastics

🇨🇦 Canada Advantages

+Lower overall tariff rate (10% vs 35%)
+Trade agreement: USMCA (duty-free on qualifying goods)
+Not subject to Section 301 tariffs (China-specific)
+Higher US trade volume ($783B vs $575B)
+Unique export categories: Crude oil, Motor vehicles, Natural gas

🇨🇳 China Advantages

+Unique export categories: Electronics, Furniture, Toys

Canada and China are both significant US trading partners, but their tariff profiles differ in important ways that affect import costs.

Canada has a lower effective tariff rate (10%) compared to China (35%), a difference of 25%.

Both countries export Machinery, Plastics to the United States, creating direct competition in these sectors.

In terms of trade volume, Canada accounts for approximately $783B in bilateral trade with the US, exceeding China's $575B.

Both countries are subject to the 10% Section 122 tariff imposed on February 24, 2026, following the Supreme Court's ruling striking down IEEPA tariffs. This rate expires approximately July 24, 2026 unless Congress extends it.

Canada's advantages include: Lower overall tariff rate (10% vs 35%); Trade agreement: USMCA (duty-free on qualifying goods); Not subject to Section 301 tariffs (China-specific); Higher US trade volume ($783B vs $575B); Unique export categories: Crude oil, Motor vehicles, Natural gas. China's advantages include: Unique export categories: Electronics, Furniture, Toys.

For most product categories, Canada currently offers lower import costs due to its tariff advantage. However, importers should consider factors beyond tariffs including shipping costs, lead times, quality standards, and supply chain reliability.

Frequently Asked Questions

Which has lower tariffs — Canada or China?

Canada has a lower effective tariff rate (10% vs 35%). Section 301 tariffs on China account for the difference.

Should I switch sourcing from Canada to China?

The decision depends on more than tariff rates. Consider total landed cost (shipping, insurance, customs fees), lead times, quality standards, minimum order quantities, and supply chain reliability. The 25% tariff difference is significant but not the only factor.

Do both Canada and China face the same Section 122 tariff?

Yes, both countries are subject to the 10% Section 122 tariff imposed on February 24, 2026. This flat rate replaced the variable IEEPA tariffs struck down by the Supreme Court. It expires approximately July 24, 2026. However, China faces additional Section 301 tariffs.

What products overlap between Canada and China exports to the US?

Both countries export Machinery, Plastics to the US. Canada has total bilateral trade of ~$783B while China has ~$575B.