Update on CUSMA Tariffs – August 2025
CFIB Overview
The Canadian Federation of Independent Business (CFIB) is tracking the US’s tariffs on Canadian goods, and provided the following overview in an August 1st publication:
- 35% tariff on all imports that don’t comply with the Canada-United States-Mexico Agreement (CUSMA) (effective April 2).
- Goods transshipped to evade the 35% tariff will be penalized with a 40% tariff. For example, if a business tries to avoid the 35% tariff by shipping goods through another country first, the U.S. will penalize that action with an even higher tariff of 40%.
- 10% tariff on non-CUSMA compliant potash and energy products (effective April 2).
- 50% tariff on aluminum and steel imports from all countries into the U.S. (effective June 4).
- 25% tariff on all cars and trucks not built in the U.S. (effective April 2).
- 50% tariff on copper (effective August 1).
- Elimination of the U.S. de minimis treatment for low-value shipments. Goods valued at $800 or less are now subject to all applicable duties (effective August 29) Source: cfib-fcei.ca
Understanding CUSMA
To understand CUSMA compliance, Canada’s Trade Commissioner Service notes the following:
“To be eligible for duty-free treatment in the U.S., an importer must claim the CUSMA preference based on a certification of origin completed by the exporter, producer or importer. Details on what information should be included in a certification of origin can be found under the Certification of Origin Under Free Trade Agreements Memorandum D11-4-14. Goods not accompanied by a certification of origin are considered non-originating and do not qualify for preferential tariff treatment under the CUSMA and would be subject to the 25% or 10% IEEPA tariff, depending on the good. On August 1, 2025, the 25% tariff increased to 35%.” Source: tradecommissioner.gc.ca understanding-cusma-compliance
The softwood lumber situation has simply gone from bad to worse, with no agreement in place for the last decade; the recent U.S. Department of Commerce decision to increase duties on Canadian softwood lumber imports from 6.74 to 14.63 per cent. When those duties are factored in with the increased anti-dumping duty of 20.56 per cent, the levy is over 35%.
Kim Haakstad, President and CEO of the BC Council of Forest Industries (COFI) stated the following: “These unjustified actions continue to harm workers, families, and communities on both sides of the border. To mitigate these harms, we must focus on what we can control, which is the competitiveness of the B.C. forestry industry within Canada.”
China announced earlier this week a tariff of 75.8 percent on canola seed from Canada, effectively shutting down Canadian access to their market. “With this preliminary determination of dumping for canola seed together with the existing 100% anti-discrimination tariffs on canola meal and oil, the Chinese market is effectively closed to the Canadian canola industry,” says Chris Davison, President and CEO of the Canola Council of Canada.