US Tariffs on Imports from Canada

Canada is the second-largest source of US imports at $421B annually, with USMCA-qualifying goods entering duty-free. Following the SCOTUS IEEPA ruling, non-compliant goods now face a 10% Section 122 tariff (effective Feb 24, 2026) on top of MFN duties, while Section 232 steel and aluminum tariffs of 50% remain unchanged.

The US-Canada trade relationship is governed by USMCA (the successor to NAFTA), which eliminates tariffs on goods meeting rules of origin requirements. Canada is a critical energy supplier, providing roughly 60% of US crude oil imports. Two-way goods trade exceeds $700B annually, making it one of the deepest bilateral trade relationships in the world.

Key Products Imported from Canada

Top imports from Canada include crude oil and petroleum products, passenger vehicles and auto parts, machinery, lumber and wood products, and natural gas. Canada is also a major supplier of aluminum, potash, and agricultural goods such as canola and beef.

Recent Changes

Feb 20, 2026: Supreme Court struck down IEEPA tariffs 6-3; Canada's 10% rate continues under Section 122 authority (expires ~July 24, 2026). Section 232 tariffs on Canadian steel and aluminum are 50% (doubled from 25% in June 2025). Approximately 89% of Canadian imports claim USMCA exemption (per Penn Wharton data). The USMCA joint review is due July 1, 2026, and any changes could affect preferential access.

Tips for Importers

Ensure your goods qualify under USMCA rules of origin to avoid the 10% Section 122 tariff — the certification process requires documenting North American content thresholds. For steel and aluminum, consider whether your product qualifies for any exclusion under the Section 232 process. The Section 122 tariff expires ~July 24, 2026 unless Congress acts — plan inventory accordingly. FTZs near the northern border can defer or reduce duties on goods destined for re-export.