U.S. Increases Tariffs on Canadian Imports to 35% Effective August 1

The U.S. government has announced updated tariff measures on Canadian imports, as outlined in CSMS #65798609. Effective August 1, 2025, these measures raise duties on most product categories and introduce stricter penalties for transshipment violations.

Effective Date and Applicability
These duties apply to goods entered for consumption or withdrawn from warehouse on or after August 1, 2025, at 12:01 a.m. EDT.

Tariff Rates
All imports of articles that are products of Canada will be subject to an additional 35% ad valorem duty.  This replaces the previous 25% duty imposed under earlier versions of Executive Order 14193.

​​Exemptions 

• Products classified under subheadings 9903.01.11, 9903.01.12, 9903.01.13, 9903.01.14, or 9903.01.15
• Goods for personal use contained in the accompanied baggage of individuals arriving in the United States

​​​​​​​​​​​​​​​​Enhanced Transshipment Penalties
If U.S. Customs and Border Protection (CBP) determines that goods were transshipped to circumvent Canadian tariffs, they will be subject to an additional 40% ad valorem duty, in place of the rates normally applied under subheadings 9903.01.10, 9903.01.13, and 9903.01. Products classified under 9903.01.11, 9903.01.12, and 9903.01.14 remain exempt from these penalties.

To view the full CSMS, visit: CSMS#65798609