Customs duty from Canada to United States: Import Duty Guide

Key Takeaways

• USMCA (in force since 2020) still gives 0% duty on qualifying originating goods for most Canada-US trade, and remains technically in force after the US declined full renewal at its July 2026 joint review.
• A new 50% tariff on Canadian autos, alcoholic beverages, and dairy took effect 19 August 2026 under Section 338 of the Tariff Act of 1930 - a mechanism never before used this way, and one that overrides USMCA status entirely for those three sectors.
• Canada was the US’s second-largest source of goods imports in 2025, at $381.92 billion, and the US ran a comparatively modest $48.30 billion deficit with Canada.
• Non-USMCA-qualifying general merchandise likely also faces a separate 10% Section 301 forced-labor tariff layer effective from July 2026, though how it stacks with the Section 338 sectoral tariffs isn’t clearly documented in current guidance.
• This is currently the single most volatile of the US lanes this site tracks - the 50% sectoral tariff was imposed under a legal mechanism with no track record for how long a rate set this way typically holds.

Canada-US Trade at a Glance

Canada was the US’s second-largest single source of goods imports in 2025, at $381.92 billion, with the US running a comparatively modest $48.30 billion trade deficit (far smaller, proportionally, than with Mexico or China) (US Census Bureau).

Is There a Trade Deal Between Canada and the US?

Yes - USMCA (the US-Mexico-Canada Agreement, called CUSMA in Canada), in force since 1 July 2020, gives 0% duty on the large majority of Canada-US goods trade for products that meet its rules of origin.

The agreement includes a mandatory joint review mechanism; at the first such review on 1 July 2026, USTR announced the US would not renew USMCA outright, choosing instead to continue bilateral negotiations while the agreement stays in force pending annual reviews ahead of a 2036 sunset clause (USTR; White & Case).

What Tariffs Apply Right Now Between US And Canada (And Why That Keeps Changing)

The most important recent development on tariffs between US and Canada: on 20 July 2026, the US invoked Section 338 of the Tariff Act of 1930 - a rarely-used, nearly century-old provision - to impose 50% tariffs on specific Canadian categories: automobiles, alcoholic beverages, and dairy products, effective 19 August 2026.

This covers roughly $20 billion in annual imports, and critically, a valid USMCA certificate of origin does not exempt goods in these three sectors - the 50% rate applies regardless of whether the goods would otherwise qualify for USMCA’s 0% treatment (Wiley; Holland & Knight).

For general merchandise outside those three sectors, USMCA-qualifying goods should still see 0% duty.

Non-qualifying general merchandise likely sits under the July 2026 Section 301 forced-labor tariff program’s 10% additive tier, though current CBP guidance doesn’t clearly address how that stacks with the Section 338 sectoral tariffs. Energy and potash carry separate, generally lower treatment.

Section 338 has no track record to judge stability by - it’s never been used this way before, so there’s no precedent for how long a rate set under it typically holds. Treat the 50% figure as subject to change without much notice, and verify the current rate with CBP before relying on it for a purchasing decision.

How Much Will You Pay Importing from Canada to the US?

The math depends entirely on which category you’re in.

For general merchandise that qualifies under USMCA rules of origin, duty is 0% - the “FTA available” answer is straightforwardly yes.

For autos, alcoholic beverages, or dairy specifically, expect 50% regardless of USMCA status.

US valuation uses FOB (transaction value at the port of export), there’s no VAT (only state sales tax, charged separately at checkout), no de minimis exemption of any value, and a Merchandise Processing Fee of roughly $8.06 on a typical informal entry plus a 2-3% carrier disbursement fee.

Dutix live calculator uses a flat general-merchandise duty estimate that reflects neither USMCA’s 0% for qualifying goods nor the 50% sectoral override on autos/alcohol/dairy - treat it as a rough baseline only for general merchandise outside those three categories.

FAQs About Import Duties When Importing From Canada to US

Does USMCA mean Canada-US trade is duty-free?

For qualifying goods outside autos, alcoholic beverages, and dairy, generally yes - 0% duty applies. Those three sectors specifically now face a 50% tariff regardless of USMCA-qualifying status, following an August 2026 sectoral tariff action.

Is USMCA still in force?

Yes. The US declined to fully renew it at a mandatory July 2026 joint review, opting for continued negotiation instead, but the agreement remains legally in force pending further annual reviews ahead of its 2036 sunset.

Why were autos, alcohol, and dairy singled out for a 50% tariff?

The August 2026 tariff used Section 338 of the Tariff Act of 1930, a mechanism not previously used this way, targeting these three specific Canadian export categories - the stated rationale relates to the unresolved broader US-Canada trade relationship following the USMCA joint review.

Is this lane more volatile than others?

Yes, currently the most volatile in this site’s US lane coverage - the 50% sectoral tariff was imposed under Section 338, a mechanism with no prior precedent to judge how long a rate set this way typically holds, on top of an already-unsettled broader US tariff-policy environment.