New Guidance on Additional Tariffs for Canadian Imports

As of March 4, 2025, new additional duties on imports from Canada are officially in effect. These tariffs, imposed under Executive Order 14193, are part of the U.S. government’s efforts to combat the flow of illicit drugs across the northern border and strengthen national security.

If your business imports goods from Canada, it’s crucial to understand the changes and ensure compliance with U.S. Customs and Border Protection (CBP) requirements.

Key Tariff Changes

Under the Harmonized Tariff Schedule of the United States (HTSUS), the following additional duties now apply to Canadian imports:

25% Tariff on Most Canadian Imports (HTSUS 9903.01.10)

  • This applies to all goods from Canada, except for specific exclusions listed below.
  • Personal-use goods carried by travelers arriving in the U.S. are exempt.

10% Tariff on Canadian Energy Products (HTSUS 9903.01.13)

  • This includes crude oil, natural gas, refined petroleum, uranium, coal, biofuels, and critical minerals.
  • The U.S. government defines these products under Executive Order 14156 (Declaring a National Energy Emergency).

These tariffs are in addition to existing duties, including anti-dumping and countervailing duties, taxes, and other trade fees.

Who Is Affected?

Companies that import Canadian goods—including manufacturers, distributors, and retailers—must account for the new tariff rates. The additional duties apply to goods both originating in Canada and those substantially transformed in Canada before entering the U.S.

However, there are some exemptions businesses should be aware of:

Exempted Goods:

  • Humanitarian Donations (HTSUS 9903.01.11): Includes food, clothing, and medicine donated by U.S. entities to relieve human suffering.
  • Informational Materials (HTSUS 9903.01.12): Includes books, films, artworks, and other media.

How to Properly File Imports with CBP

Businesses must ensure accurate entry summaries when declaring imports under the new tariff classifications. Some key filing requirements include:

  • Foreign Trade Zones (FTZs): Canadian-origin goods admitted into U.S. FTZs must be classified under “privileged foreign status” and will be subject to these duties when entered for U.S. consumption.
  • De Minimis Exemptions: The standard $800 exemption for low-value shipments (Section 321) still applies for eligible imports.
  • HTS Reporting Sequence: Importers must follow a specific order when filing tariffs, ensuring correct duty associations in CBP’s Automated Commercial Environment (ACE) system.

What Happens If You Don’t Comply?

CBP has announced strict enforcement measures, including:

  • Rejected Entry Summaries – If an importer fails to deposit the correct duties, CBP will reject the entry summary and require resubmission within two business days.
  • Liquidated Damages – Importers who fail to comply may face financial penalties.
  • No Drawback Available – These additional duties cannot be refunded through the standard duty drawback process.

What’s Next?

CBP will provide further updates as needed, but businesses should immediately review their supply chains, reassess pricing strategies, and update compliance protocols to avoid disruptions.

As customs brokerage is one of the core services offered by GLC, our specialized team is closely monitoring these developments to ensure compliance and minimize disruptions for our clients. We will continue to track updates from CBP and provide guidance as new information becomes available.