- Tariffs are taxes imposed by a government on foreign goods entering their territory.
- Tariffs are synonymous with customs duties—taxes imposed by a country’s government on goods that are imported.
- Tariffs are usually a percentage of the price of the imported good.
- Governments impose tariffs on imported goods to regulate trade, protect domestic industries from foreign competition and generate revenue.
What are tariffs?
More About Tariffs
Tariffs are paid by importers directly to government tax authorities.
- Tariffs that Canada imposes on goods and services entering Canada are collected by Canada Border Services Agency (CBSA) agents at ports of entry. These revenues are then transferred to the federal government’s general revenues.
- Tariffs that the United States impose on goods and services entering the U.S. are collected by US Customs and Border Protection agents at ports of entry. These revenues are then directed to the United States Treasury.
To determine the applicable tariff rate for any imported goods, key information that importers must accurately declare includes:
- The customs value of the goods based on accepted or prescribed accounting methods
- The customs classification of the goods based on Harmonized System (HS) codes
- The quantity of the goods
- The origin of the goods
While importers are responsible for paying them, tariffs can be passed on to consumers through increased prices.
Businesses can use the Canada-Tariff Finder to check import or export tariffs for specific goods and markets. Use this link to access the free tool: https://www.tariffinder.ca/en/
The Government of Canada also has online tools to search for tariffs by product and country: https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cptpp-ptpgp/tariff_country_product-information-tarifaire_pays_produit.aspx?lang=eng.
- 25% tariff on all non-CUSMA compliant Canadian and Mexican imports, with a lesser 10% tariff on potash and energy, which took effect on March 4.
- This essentially means that things made in Canada with Canadian, U.S., or Mexican inputs or where most of the value is added in Canada are still tariff-free for the moment. More details can be found at https://www.tradecommissioner.gc.ca/united-states-of-america-etats-unis-amerique/self-serve-resources_ressources-libre-service.aspx?lang=eng#understanding.
- 25% tariff on global steel and aluminum imports, including Canadian products, which took effect on March 12.
- 25% tariff on global auto imports, including Canadian products, that do not meet CUSMA rules of origin requirements, which took effect on April 3.
- 25% tariff on the value of non-US content in auto parts, to be announced by May 3 at the latest. These tariffs are expected not to apply to auto parts that qualify for CUSMA preferential treatment.
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- Should the fentanyl/migration tariffs be terminated or suspended, a 12% reciprocal tariff will be applied on non-CUSMA compliant goods imported from Canada or Mexico.[1] CUSMA originating goods would not be subject to a reciprocal tariff. If applied against Canada, the 12% Reciprocal Tariff would also not apply to:
- articles and derivatives of steel and aluminum subject to Section 232 tariffs;
- autos and auto parts subject to Section 232 tariffs;
- other products such as copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, and energy and energy products;
- all articles that may become subject to duties pursuant to future action under Section 232.
- Should the fentanyl/migration tariffs be terminated or suspended, a 12% reciprocal tariff will be applied on non-CUSMA compliant goods imported from Canada or Mexico.[1] CUSMA originating goods would not be subject to a reciprocal tariff. If applied against Canada, the 12% Reciprocal Tariff would also not apply to:
- On March 20, 2025, China imposed retaliatory duties of 25% on pork, fish, and seafood, as well as 100% on canola oil, canola meal, and peas exported from Canada. These products represented $3.6 billion in Canadian exports to China in 2024, accounting for 5.6% of China’s total imports from Canada.
- Effective March 4, 2025, Canada imposed 25% tariffs on $30 billion of imports from the U.S., in response to U.S. International Emergency Economic Powers Act (IEEPA) tariffs put in place on March 4. These tariffs only apply to goods originating from the U.S., which shall be considered as those goods eligible to be marked as a good of the U.S. in accordance with the Determination of Country of Origin for the Purposes of Marking Goods (CUSMA Countries) Regulations.
- Effective March 13, 2025, Canada has imposed 25% tariffs on $29.8 billion in products imported from the United States (U.S.). These tariffs only apply to goods originating from the U.S. in accordance with CUSMA.
- Effective April 9, 2025, Canada has imposed 25% tariffs on non-CUSMA-compliant U.S.-made vehicles, and on the non-Canadian and non-Mexican content of CUSMA-compliant U.S.-made vehicles. Additional details can be found here.
Where can I go for support or additional information?
Government Support
The Government of Canada has announced new industry support programs to protect Canadian workers including:
- Launching the Trade Impact Program through Export Development Canada (EDC). The program will deploy $5 billion over two years, starting this year, to help exporters reach new markets for Canadian products and help companies navigate the economic challenges imposed by the tariffs, including losses from non-payment, currency fluctuations, lack of access to cash flows, and barriers to expansion. EDC is part of the Government of Canada’s trade ecosystem of experts who are available to help you save time, learn more about your target markets, and identify the capital you need to grow. Some of EDC’s offerings include:
- A full suite of credit insurance products to lower your risk of doing business abroad
- Help with getting access to working capital
- Expertise to enable you to learn more about international markets
- Connections to international companies in need of your products and services
- Making $500 million in favourably priced loans available through the Business Development Bank of Canada (BDC) to support impacted businesses in sectors directly targeted by tariffs, as well as companies in their supply chains. Businesses will also benefit from advisory services in areas such as financial management and market diversification. BDC offers financing, advisory solutions, and capital to small and medium-sized businesses in all industries and at all stages of growth. Here, you can access specific support for navigating trade uncertainty.
- Providing $1 billion in new financing through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry. This lending offer will help address cash flow challenges so that businesses can adjust to a new operating environment and continue to supply the high-quality agricultural and food products that Canadians rely on.
- Introducing temporary flexibilities to the EI Work-Sharing Program to increase access and maximum agreement duration. The Work-Sharing Program provides partial EI benefits to employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their employer’s control.
- Trade Commissioner Service (TCS) is offering Canadian businesses support by connecting them with funding and support programs, international opportunities, and a network of trade commissioners in more than 160 cities worldwide.
- CanExport SMEs supports small and medium-enterprises to export Canadian goods and services to new international markets. Successful applicants can receive up to $50,000 to support eligible market development activities for existing products and services in foreign countries.
- The Canadian International Innovation Program (CIIP) supports Canadian companies in pursuing international research and development (R&D) collaborations with foreign partners on projects that have the potential for commercialization.
- A performance-based remission framework for automakers. This will allow automakers that continue to manufacture vehicles in Canada to import a certain number of U.S.-assembled, CUSMA-compliant vehicles into Canada, free of the countermeasure tariffs that Canada has imposed. The remission granted to these companies is contingent on these automakers continuing to produce vehicles in Canada and on completing planned investments. The number of tariff-free vehicles a company is permitted to import will be reduced if there are reductions in Canadian production or investment.
- The government intends to provide temporary 6-month relief for goods imported from the U.S. that are used in Canadian manufacturing, processing and food and beverage packaging, and for those used to support public health, health care, public safety, and national security objectives. The remission is provided on a time-limited basis to provide businesses and entities with additional time to adjust their supply chains and prioritize domestic sources of supply if available.
- Establishment of the Large Enterprise Tariff Loan Facility (LETL). This program will support eligible large businesses—including those that contribute to Canada’s food security, energy security, economic security and national security—that are facing difficulties in accessing traditional sources of market financing, by providing access to liquidity. Companies will be required to make efforts to maintain jobs and sustain business activities in Canada. Those that were already involved in insolvency proceedings before this crisis will not be eligible.
- Additional supports will be added to this list as they’re announced.
Provincial and Territorial Support
- Tax deferrals for businesses until June 20, 2025. Find out more at: https://www.manitoba.ca/finance/taxation/.
- Connecting with businesses and workers through a dedicated hotline to provide information and assistance about the tariffs. Contact at 204-945-8011 or toll-free at 1-877-827-4330 (1-877-TARIFF-0) within Manitoba.
- Deferring select provincially administered taxes for six months from April 1, 2025, to October 1, 2025, giving businesses and job creators approximately $9 billion worth of cash flow they need to keep workers employed and weather the economic turmoil.
- The Workplace Safety and Insurance Board (WSIB) is issuing a further $2 billion rebate for safe employers to support businesses and help keep workers on the job, in addition to the previous $2 billion rebate distributed in March.
- FRONTIERE program: Aims to maintain the activities and liquidity of Québec’s export companies in the manufacturing and primary sectors, with loans up to $50 million.
- ESSOR program: Provides interest-free repayable loans and grants non-repayable contributions to businesses with investment projects of more than $10 million that stand out in terms of productivity.
- Panorama financing and support: Provides working capital to increase or diversify sales in Canada and internationally (excluding the U.S.).
- Grand V initiative: Aims to stimulate investments and accelerate the shift toward innovation and sustainable productivity to propel business growth.
- FORCE program: Assists businesses affected by tariffs or the threat of tariffs in developing the skills of their workforce.
- Local Investment Funds (LIF): Companies can benefit from a six-month deferral for reimbursement, including principal and interest repayment, of the financing granted under the FLI.
- Caisse de dépôt et placement du Québec’s (CDPQ) program: Encourages Quebec companies to launch new projects to increase their productivity or to make a strategic pivot to new markets.
- Opportunities NB: Leverage its existing $30 million strategic assistance budget to address current challenges, support contingency planning, market diversification, and productivity improvements
- $40 million competitiveness and growth program: Aimed at enhancing the long-term sustainability of New Brunswick’s large export-intensive companies.
- Working capital loans: Up to $5 million in financial support to help businesses maintain operations.
- New Brunswick Fisheries Fund: $4 million allocated to support seafood producers, who are among the hardest hit.
- Flexible labour market support program: Providing support and services to those whose jobs have been affected by tariffs.
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- Export Enhancement and Diversification Fund: Covers up to 60 percent of costs (to a maximum of $32,000) associated with market research, advertising, trade shows, and market strategies.
- Tariff Working Capital Assistance Program: Provides financial relief to businesses affected by tariffs, helping them maintain operations, preserve jobs, and invest in alternative supply chain strategies. Eligible businesses can receive up to $500,000 over six years at a fixed rate of four percent, with principal payments deferred for 12 months.
- Expanded trade missions: Innovation PEI is doubling trade missions for Island exporters, with planned missions across Canada, Europe, Southeast Asia, and the Mexico/Caribbean region.
- Expanded support for the PEI agriculture industry: Investment of additional funds into existing Sustainable CAP programs that support farmers, industry groups, and agri-businesses in finding new markets.
Additional Information
Canadian Commercial Corporation (CCC) supports you to pursue sales to foreign governments at all levels and provides a government-to-government contracting mechanism that de-risks the transaction for both you and your buyer.
Innovation, Science and Economic Development Canada (ISED) helps you find and take advantage of the government services you need to expand or scale up your business in Canada and around the world.
- Canadian Importers Database: Provides summary reports and lists of companies importing goods into Canada.
- Trade data online: Trade Data Online provides the ability to generate customized reports on Canada and U.S. trade in goods with over 200 countries.
Supporting Canadian exporters through United States tariff challenges (Government of Canada): Access real-time information and updates concerning U.S. tariffs and resources from various agencies.
Canada Customs Tariff: Get tariff classifications for goods you want to import into Canada. The Canadian Customs Tariff shows the preferential tariffs for products coming from countries with which Canada has a free trade agreement. It is based on the World Customs Organization’s Harmonized Commodity Description and Coding System.
Canadian Society of Customs Brokers (CSCB): Partner with a customs broker or freight forwarder to determine the correct code for your goods. It can be complex in some cases.
Process for requesting remission of tariffs that apply on certain goods from the U.S.: The Government of Canada is outlining a framework and process for how it will consider remission requests for the tariffs on products from the United States (U.S.) that apply beginning on March 4, 2025. Under specific circumstances, remission allows for relief from the payment of tariffs, or the refund of tariffs already paid.
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