IMPORT TARIFFS - LATEST NEWS & UPDATES

How Much Does it Cost to Import Goods from Canada?

Importing goods from Canada into the United States will require you to pay duties, freight charges, and customs user and brokerage fees. The United States - Canada - Mexico Agreement (USMCA) is a free trade agreement (FTA) that mitigates or eliminates some of these duties. However, many imported goods from Canada are still subject to increased duties due to tariffs enacted throughout 2025. We’ll explain the costs you’ll encounter when you import from Canada.

Key Takeaways:

  • Products imported from Canada for sale in the US are subject to duties if they do not meet the duty-free criteria established in the USMCA.
  • Canadian Goods and Services Tax (GST) or the Provincial Sales Tax (PST) generally don’t apply to goods exported to the US. 
  • The USMCA FTA states that many goods enter the US duty-free or under a preferential rate. 
  • New importers should be aware that several popular products are subject to tariff-rate quotas (TRQ). 
  • A licensed customs broker can reduce delays and compliance risk by validating HTS classification, USMCA documentation, and admissibility requirements.

USA Customs Clearance is staffed with Licensed Customs Brokers who can provide expert assistance with general import brokerage and the finer points of importing goods from Canada. 


About this guide: This article summarizes common cost categories for importing from Canada into the US. Duty rates and tariffs can change, and final charges depend on HTS classification, origin, documentation, and Customs and Border Protection (CBP) admissibility.

45 Minute Licensed Expert Consulting Will Personally Guide You
USA CUSTOMS CLEARANCE
Handle Your Costs With the Right Guidance

Our Expert Customs Consultants Will Personally Guide You.

Contact our Licensed Expert Consultant >

August 2025 Tariffs

On August 1st, 2025,the US increased the 25% tariff on Canadian products that don’t claim or qualify for USMCA preference to 35%. Imports of energy products and potash remain at 10%. That said, Canadian products that meet the USMCA rules of origin can enter duty-free. 

Unfortunately, this exception doesn’t apply to certain Canadian products affected by Section 232 tariffs. Section 232 is a law that allows the president to impose trade restrictions on imports that threaten national security. This includes metals like steel, aluminum, and copper. All three of these commodities face a 50% tariff rate.

Do I Have to Pay Import Duties From Canada?

You will not owe duties on goods that are imported from Canada if they qualify for preferential, duty-free status in the USMCA. However, commodities that do not meet the USMCA’s rules of origin will be subject to duties, many of which are increased by tariffs. Additionally, not all commodities benefit from USMCA even if they do originate from Canada or Mexico.

Tariffs that increase the rate of duty on Canadian imports include those assessed under authority of Section 232 of the Trade Expansion Act of 1962 and others invoked by executive mandate using the International Emergency Economic Powers Act (IEEPA). The IEEPA is a law that allows the US president to regulate or prohibit international commerce and transactions. 

Notable imports from Canada that do not receive preferential treatment from the USMCA include:

  • Steel 
  • Aluminum 
  • Copper and certain derivative products
  • Non-US originating vehicles

Most favored nations (MFN) is a default duty rate the US applies to many imports under the harmonized tariff schedule when an FTA like USMCA doesn't apply.

The most common imports costs from Canada arise from: 

  • US import duties
  • Permit applications
  • Customs brokerage fees
  • Getting a customs bond
  • Merchandise processing fees (MPFs)

With some careful planning and the right guidance, you can handle these costs and make the most of the opportunities that cross-border trade presents.

Different Commodities and Their Related Costs

The type of commodity you're importing plays an important role in determining the fees you’ll owe to CBP when your goods arrive from Canada. CBP is also the primary agency that oversees the importation of goods into the US. 

Import duties are determined by the Harmonized Tariff System (HTS) code applied to every commodity entering the country.

When calculating the fees between the U.S. and Canada specifically, you’ll also need to reference the USMCA. A number of items are still subject to import duties. 

I’ve gathered a list of the more common ones along with a range of base tariff rates. The rates shown reflect MFN and non-preferential duty ranges.

A table shows the base rate import duty based on HTSUS codes for different commodities imported from Canada. Next to each listed commodity is the Base rate tariff range. First is dairy products with a range from 31 cents to $2.27 per kg plus 17% of value. Next is sugar preparations with a range of 17 cents to 40 cents per kg plus 10.4% of value. Next is chocolate with a range of 22 cents to 53 cents per kg plus 8.5% of value. Next is peanuts with a range of 131.8% to 163.8% of value. Next is baby formula which is $1.04 per kg plus 14.9% of value. Last is cotton, with a range of 8 cents to 31 cents per kg. Data comes from the U.S. Trade Representative.

Source: U.S. Trade Representative 

Certifying the origin of your goods and how those goods are staged on the tariff schedule will also determine your final duty rate.

When you’re looking at the base rate, keep in mind that these are estimates based on the wide variety of products in those general categories. The above is only a small sample of the possibilities. These are presented based on weight, but the range can be based on volume in liters for some liquid commodities.

At times, the price per kilogram is all you’ll need to cover. Other times it will be that weight plus a percentage of the overall value. I’ve provided you with the highest possible percentage you’re likely to need to pay within each category as applicable depending on the product’s tariff rate quota (TRQ) status for a given fiscal quarter. 

Products in the dairy category, like various cheeses, are subject to TRQs. These require special permits issued by the US Department of Agriculture and limit the amount of products that can be imported before the tariff rate increases, usually to the point where it’s no longer cost-effective to import the product in question.

Determining USMCA Origin Status

USMCA rules of origin are a set of tests used to determine whether a good is truly considered to originate in Canada, the US, or Mexico for preferential treatment. You’ll need to submit a USMCA certificate of origin and supplier documentation during the import process to prove your goods match the product’s HTS-specific rule.

The USMCA’s list of goods that qualify as originating from a member country if they’re sourced or manufactured therein includes, but is not limited to:

  • Minerals
  • Plants and live animals 
  • Scrap and waste derived from articles produced in a USMCA member country

Articles that are wholly produced with materials sourced within the participating countries qualify as USMCA-originating. 

The USMCA also allows some final products produced with non-originating materials to be considered originating if the following criteria are met:

  • Regional Value Content: A percentage of the value of the product must be attributed to production in the USMCA territory.
  • Tariff Shift: The non-originating goods undergo sufficient transformation during production to create a product that falls under a new HTS classification.
  • Commodity-Focused Rules: Some sectors, such as automobiles and auto parts, have specific rules governing their status as originating within the USMCA area.

Many USMCA determinations are HTS-rule specific, which means the required tariff shift or regional value content changes by product. Determining a product’s viability as USMCA-originating can be difficult for new or inexperienced importers. 

We recommend speaking with a customs broker prior to importation. Their experience will help you determine if your goods can be imported duty-free under USMCA.

Political and Economic Factors That Affect the Cost of Canadian Imports

The type of commodity isn’t the only factor affecting the costs. Any number of international trends and political situations can cause changes to tariffs and the duties you’ll owe.

Key considerations to keep in mind include: 

  • Supply and Demand Dynamics: The basic principle of economics applies here. If a commodity is in high demand, but in short supply, the price is going to go up. These increases can then bump up your import costs since most tariffs are based on a percentage of total value. The percentage doesn’t change, but what you’ll have to pay for the exact same amount of product goes up. 
  • Currency Exchange Rates: Exchange rates between the US Dollar (USD) and the Canadian Dollar (CAD) can directly impact your import costs. If the Canadian dollar strengthens against the USD, the domestic cost of your goods goes up, increasing your overall import costs. On average, $1 USD is equal to $1.36 CAD as of February 2026. That said, exchange rates between the US and Canadian dollar can change weekly.
  • Global Market Conditions: In recent years there have been trade disputes involving dairy products, softwood lumber, auto parts, and energy. These can result in either semi-permanent price hikes, or possibly tax breaks, depending on what side of the issue the U.S. lands on. 

Planning for these costs requires importers to perform consistent market research and stay up-to-date with political & economic policy changes between the US and Canada. The more you know, the higher the chance of making good decisions, and the more successful your importing business can be.

Highway road signs indicating directions to US or Canada near a border crossing.

Do US Importers Have to Pay Canadian Sales Tax?

US importers do not pay Goods and Services Tax (GST) or Provincial Sales Tax (PST) in Canada on goods they are importing into the United States. The Harmonized Sales Tax (HST), a combination of GST and PST used in five Canadian provinces, is treated the same way.

While GST/HST technically applies, the rate is set to zero, so no tax is actually charged. This is based on the principle that consumption taxes should apply only in the jurisdiction where goods and services are consumed.

The exceptions to this rule generally involve imported goods that might have been used in Canada before being exported, such as a used car. Others involve the import of energy sources. 

It's important to note that the specifics vary greatly. Always consult with a Licensed Customs Broker for advice about your specific circumstances.

Calculating Your Total Landed Costs

Knowing how to calculate the landed cost of an imported shipment is a vital business skill. These are the costs directly associated with a given shipment of imported merchandise. 

The following fees are used in most landed cost calculations:

  • Import duties
  • Freight shipping costs
  • Merchandise processing fees
  • Cargo insurance
  • Miscellaneous customs fees
  • Harbor maintenance fees (when applicable)

An MPF is a CBP user fee commonly charged on formal entries, while an HMF is a fee charged to ocean freight to help maintain US harbors and ports. 

When importing from Canada, you probably won’t pay HMFs often as the fee applies to ocean shipments docking in ports to offload merchandise. The fee does not apply to terrestrial freight transportation or imports that arrive by air.

Out of all the fees that make up landed costs, the most difficult to estimate are duties on your imported goods. Our landed cost calculator incorporates IEEPA and sectoral tariffs into its HTS lookup function, making it an invaluable tool for importers who need to estimate duties on goods from Canada.

Guessing Gets Expensive

It's time you found out your landed cost.

Accurately estimate import duties and tariffs in minutes, based on origin, value, and product type, so you can foresee your costs and never get surprised after you buy.

Hiring A Customs Broker 

Even experienced importers often work with Licensed Customs Brokers because of their ability to manage a variety of processes. Among other things, brokers can:

  • Accurately calculate customs duties
  • Ensure goods are correctly classified under the HTS code system
  • Arrange the payments to the proper authorities
  • File documents with Customs and Border Protection

You aren’t legally required to use the services of a customs broker whether you’re operating out of the United States or Canada. Choosing the DIY approach, however, has landed many new importers in hot water with the CBP. 

Wrong HTS code? Say hello to a reclassification fee. Document errors causing a delay at the border crossing? You’ll need to pay for additional storage time, document resubmission, and possibly a CBP inspection fee. 

In the end, it’s usually more cost-effective to hire a professional with experience in the finer points of customs clearance.

Document Processing

If you’ve hired a customs broker, they can handle most necessary documentation on your behalf. Most, if not all, have access to the online submission systems like the Automated Clearing House (ACH) and others. 

Other documents often required include:

  • Pre-Arrival Processing System (PAPS) Number: A PAPS number is a unique barcoded tracking identifier assigned by motor carriers to commercial shipments traveling from Canada to the US. Since goods from Canada are most often shipped by truck, a PAPS number may be required. 
  • Customs Bond: A customs bond is a guarantee to CBP the importer will comply with regulations and pay applicable duties and taxes. Imports that are valued over $2,500, regulated by a PGA, or subject to AD/CVD and other additional duties must have their import duty amount covered by a bond issued by a bank or surety. 
  • Importer Security Filing: A ISF is a mandatory document required by CBP before imports enter the country. For those that are importing from Canada via cargo vessel, you’ll need to submit the ISF no fewer than 24 hours prior to vessel lading. 

There are fees related to each of these documents, either directly to the issuing agency or as set by the brokerage firm assisting you with importing. 

Domestic Logistics

I’ve grouped up the various other transport-related services here to keep things simple. In this case, domestic logistics costs include shipping, warehousing, and possibly packaging. 

These can technically be handled by separate entities, but let’s be honest, who wants to keep track of that many companies? Therefore, when calculating your final landed costs, include the costs of hiring a reliable third party logistics company (3PL). 

A 3PL often serves multiple channels in the logistics industry, including shipping and warehousing. In many cases, they can help with many of the needs we’ve already discussed. 

  • Customs brokerage
  • International freight forwarding
  • Warehouse fulfillment and distribution
  • Cargo insurance
  • Truckload shipping

USA Customs Clearance can actually help you with several of these, as we have an established relationship with R+L Global Logistics, a nationwide 3PL provider.

Q & A: Import Costs From Canada

Strategies For Minimizing Trade Costs

A big part of saving on import costs from any nation involves complying with regulations and working with an experienced customs broker. Our import cost reduction playbook includes a detailed list of proven, legal methods of keeping import costs like duties and inspection fees to a minimum.

Work Within Existing Trade Agreements

The current Free Trade Agreement benefiting U.S./Canada trade is the 2020 USMCA, formerly known as the North American Free Trade Agreement (NAFTA). Its creation improved the import process between the participating nations by modernizing provisions and reducing different trade barriers.

  • Lower de minimis shipment values
  • Reciprocal duty-free market access
  • Digital trade provisions
  • Well-defined criteria to minimize classification errors

By choosing imports that are largely protected from harsh import fees, businesses can save thousands of dollars.

Look For High Volume Shipments

The current Free Trade Agreement benefiting US/Canada trade is the 2020 USMCA, which replaced the North American Free Trade Agreement (NAFTA). Its creation improved the import process between the participating nations by modernizing provisions and reducing different trade barriers.

  • Lower de minimis shipment values
  • Reciprocal duty-free market access
  • Digital trade provisions
  • Well-defined criteria to minimize classification errors

By choosing imports that are largely protected from harsh import fees, businesses can save thousands of dollars.

45 Minute Licensed Expert Consulting Will Personally Guide You
USA CUSTOMS CLEARANCE
Save Thousands Working With Experts

Receive Personalized Assistance for Regulated Commodities. 

Contact our Licensed Expert Consultant >

Imports from Canada Made Possible With USA Customs Clearance

At USA Customs Clearance, we're dedicated to simplifying your importing process. Our services are designed to empower you to navigate import costs with confidence, giving you more time to focus on what truly matters – your business. 


As both a CBP-licensed customs brokerage, we can seamlessly facilitate your imports and simplify costs between the US and Canada. Give us a call at (855) 912-0406 for a risk-free brokerage services quote. You can also reach us on our contact page. Let's turn your importing journey into a smooth and successful venture, together.

Share This Article
copy-link-to-clipboard Copy URL to Clipboard
[DISPLAY_ULTIMATE_SOCIAL_ICONS]

Add usacustomsclearance.com as a preferred source!
See more of our coverage in Google's Top Stories.

Add usacustomclearance.com as a preferred source!
See more of our coverage in Google's Top Stories.

Leave a Reply

Latest comments (2)

I am considering the purchase of a 1976 Cessna 177B aircraft based in Hawksbury, Ontario and understand that importing and aircraft into the US from Canada is somewhat complicated. I am interested in learning whether your firm handles such transactions.

USA Customs Clearance
315 NE 14th St #4122
Ocala, FL 34470
(855) 912-0406
Copyright © 2026 AFC International LLC. All Rights Reserved.
magnifiercross