US Tariff Update – Additional Duties on Imports from Canada
This article is a summary of CSMS #65798609. To review the complete document, please click on the following link:
CSMS # 65798609 – Update – Additional Duties on Imports from Canada
Background
The purpose of this guidance is to provide an update on the additional duties due on imports that are the products of Canada, pursuant to Executive Order 14193, “Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border” issued on February 1, 2025, as amended by:
- Executive Order 14197, “Progress on the Situation at our Northern Border” issued on February 3, 2025,
- Executive Order 14226, “Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border” issued on March 2, 2025,
- Executive Order 14231, “Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border” issued on March 6, 2025, and
- Executive Order, “Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border” issued on July 31, 2025.
This CSMS updates CSMS 64336037 with the following information only.
GUIDANCE
Effective August 1, 2025 at 12:01 AM EDT, significant changes to import duties on Canadian products take effect:
35% additional duty applies to most Canadian goods entering the U.S. for consumption or withdrawn from warehouses
- Covers all Canadian products except those in specific exempted categories
- Personal items in travelers’ baggage remain exempt
Duty increase from 25% to 35% for goods previously subject to Executive Order 14193
- This represents a 10 percentage point increase for affected products
- Change applies automatically to existing covered items
Anti-evasion measures target transshipment attempts:
- Goods determined by U.S. Customs and Border Protection (CBP) to be transshipped to avoid duties face even higher penalties
- 40% additional duty rate applies to transshipped Canadian products
- This penalty rate replaces standard rates for violating importers
Classification system uses specific HTSUS codes:
- 9903.01.10: Standard 35% rate for most Canadian goods
- 9903.01.16: Enhanced 40% rate for transshipped items
Scope and exceptions:
- Multiple product categories have specific exemptions under headings 9903.01.11 through 9903.01.15
- CBP has authority to determine transshipment violations
- Enforcement begins immediately on the effective date
Should you or your organization have any questions,
please do not hesitate to contact your Dominion Customs Consultants representative,
or feel free to reach us here
