🇨🇦 Canada vs 🇯🇵 Japan Tariffs — Import Duty Comparison (2026)

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

Both countries face the same base tariff rate of 10% on most goods entering the United States.

Both countries export Motor vehicles, 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 Japan's $218B.

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: Trade agreement: USMCA (duty-free on qualifying goods); Higher US trade volume ($783B vs $218B); Unique export categories: Crude oil, Natural gas, Lumber. Japan's advantages include: Unique export categories: Electrical machinery, Medical instruments, Optical instruments.

With equivalent base tariff rates, the choice between Canada and Japan depends primarily on product-specific duties, shipping costs, lead times, and supply chain considerations rather than the base tariff rate.