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US-Canada Tariffs: What Cross-Border Sellers Need to Know

If you ship products between the US and Canada, 2026 has brought two big changes, one on each side of the border.

The US already added a new tariff on many Canadian-made goods. Canada is about to add a new tariff on many US-made goods. If you sell in either direction, this affects you.

Here’s what’s happening on both sides, and what to check.

If you ship US-made goods into Canada

Starting September 8, 2026, Canada will charge new tariffs of 15%, 25%, or 50% on US-made goods. The list covers nearly 900 specific products.

Product types most affected include:

  • Clothing, fabric, shoes, and hats
  • Leather goods and accessories
  • Electronics and appliances
  • Furniture, bedding, and lighting
  • Toys, games, and sports gear
  • Machinery, farm equipment parts, and carpets

Each product gets its own rate based on its exact product code, called a Harmonized System (HS) code. Two products that look almost the same can end up with very different rates. Look up your specific HS code on Canada’s official list. Don’t guess based on the general category.

This list adds on top of older tariffs, it does not replace them. Canada already has tariffs on US steel, aluminum, and cars that have been in place since September 2025. Those stay in effect too.

If you ship Canadian-made goods into the US

This one already started. Since August 22, 2026, the US has charged an extra 50% tariff on many Canadian-made goods, on top of any tariff that already applied. It covers roughly $20 billion worth of goods a year, spread across hundreds of specific product lines.

The three categories named most often are dairy, alcohol, and motor vehicles. But the full list goes much further, including furniture, clothing, wine, cement, plywood, seeds, and even items like fishing rods and hockey sticks.

Unlike some past tariffs, this one has no end date built in. It stays in place until the US government changes or removes it.

Two things that trip up sellers on both sides

USMCA/CUSMA status will not save you here. USMCA (called CUSMA in Canada) is the free trade agreement between the US, Canada, and Mexico. Many products that qualify under this agreement normally move between the three countries with little or no tariff. That protection does not apply to either of these new tariffs. Products that would normally qualify for reduced or no tariffs under USMCA/CUSMA are not exempt here. Don’t assume your usual paperwork will protect you. Check anyway.

Small orders are not automatically safe. On the Canada side, the usual CAD $150 small-order exemption does not apply to items on the new list. On the US side, separate rules about low-value shipments have also been changing this year. Either way, don’t assume a small or low-value order is exempt without checking.

A simple checklist for sellers on both sides

  1. List your cross-border products in both directions and confirm where each one is made.
  2. Look up the exact product code for each item on the relevant official list. The category name alone won’t tell you the rate.
  3. Update your prices or cost estimates for anything affected, on either side of the border.
  4. Talk to your logistics or customs partner about any changes needed for paperwork or duties.
  5. Check back often. Both of these tariff lists have changed fast since late summer, and they may keep changing.

The bigger picture

Tariffs that change by product, apply at the exact code level, and stack on top of older tariffs are hard to track by hand, in either direction. That’s especially true heading into peak season. This is the kind of complex work a good fulfillment and customs partner should handle for you, not leave on your plate.

Tariff rules can change fast on both sides of the border. The rates and categories above match official government sources as of publication. Always double check the current rules before you finalize pricing on a live order.

Frequently asked questions

Are the US tariffs and the Canada tariffs the same thing? No. They’re two separate actions going in opposite directions. The US tariff (an extra 50%, in effect since August 22) applies to Canadian goods coming into the US. Canada’s new tariff (15% to 50%, starting September 8) applies to US goods coming into Canada.

Which one affects me? It depends on which direction you ship. If you send US-made products to Canadian customers, the September 8 tariffs apply to you. If you send Canadian-made products to US customers, the tariffs already in effect since August 22 apply to you. Some sellers ship both ways and need to check both lists.

Could either list get bigger later? Nothing new has been announced on either side yet. Given how fast both of these have moved since mid-2026, it’s smart to treat both lists as a snapshot, not something final.

Do small or low-value shipments get a pass? Not on the Canada side. The usual CAD $150 exemption does not apply to items on Canada’s new list. Rules on the US side for low-value shipments have also shifted this year, so check current guidance rather than assuming an old threshold still applies.

How do I check if my product is on either list? Both governments have published official lists with product-level detail. Search by your product’s exact code, not by general category. The code is what decides the rate, not the product type.

What should I do right now? Review your cross-border products in both directions, match each one to the relevant official list, update your prices or duty estimates for anything affected, and check with your logistics or customs partner about any changes to your shipping setup.

Does USMCA/CUSMA protect any of my products? No, not for either of these tariff actions. Products that would normally qualify for reduced or no tariffs under USMCA/CUSMA are not exempt from the US tariff or Canada’s new tariff.

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