Tariffs Increase to 35% on Products of Canada

On July 31, 2025, U.S. President Trump increased tariffs on products of Canada through an Amendment to Duties to Address the Flow of Illicit Drugs Across our Northern Border.

Effective August 1, 2025, International Emergency Economic Powers Act (IEEPA) tariffs on products of Canada will increase from 25% to 35%.

Details

Effective Date

The 35% tariff rate [HTSUS 9903.01.10] shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 1, 2025.

Tariff Stacking

The stacking rules set out in Executive Order 14289 of April 29, 2025 (Addressing Certain Tariffs on Imported Articles), and any subsequent order or proclamation addressing stacking of tariffs imposed under IEEPA, shall continue to apply to goods that are subject to the tariffs.

Exception

• Energy: The tariff rate on energy a product of Canada is not affected and remains at 10%.
• USMCA claimed goods of Canada will continue to be exempt from the IEEPA Canada tariff.
• Potash: The tariff rate on potash, a product of Canada is not affected and remains at 10%.

Transshipment

• (a) all articles of Canada that do not qualify as originating under USMCA and are determined by U.S. Customs and Border Protection (CBP) to have been transshipped to evade applicable duties under section 2 of this order shall be subject to:
  • (i) an additional ad valorem rate of duty of 40 percent [HTSUS 9903.01.16], in lieu of the additional ad valorem rate of duty applicable under section 2 of this order to goods of the country of origin;
  • (ii) any other applicable or appropriate fine or penalty, including those assessed under 19 U.S.C. 1592; and
  • (iii) any other United States duties, fees, taxes, exactions, or charges applicable to goods of the country of origin.  CBP shall not allow, consistent with applicable law, for mitigation or remission of the penalties assessed on imports found to be transshipped to evade applicable duties.
• (b)  The Secretary of Commerce and the Secretary of Homeland Security, acting through the Commissioner of CBP, in consultation with the United States Trade Representative, shall publish every 6 months a list of countries and specific facilities used in circumvention schemes, to inform public procurement, national security reviews, and commercial due diligence.

Have Questions? Contact your local NNR Representative.

We will continue to monitor this tariff action and provide updates as they become available.