Canada’s 25% Tariff on U.S. Imports In Effect March 13

Trade Update • March 12, 2025

n response to the U.S. tariffs, Canada announced a $155 billion retaliatory tariff package. 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 Purpose of Marking Goods (CUSMA Countries) Regulations.

Affected U.S. Goods (Imports)

Phase 1
These countermeasures are effective as of 12:01 a.m., March 13, 2025, and will remain in place until the U.S. eliminates its tariffs against Canadian steel and aluminum products. Canada’s countermeasures do not apply to U.S. goods that are in transit to Canada on the day on which they come into force.

Phase 1 includes a 25% tariff on nearly $30 billion worth of U.S. goods:
Access full listing of U.S. goods (imports) and associated tariff.

The list of products outlined at the tariff item level in the table show via the link above can be read in conjunction with the Schedule to Canada’s Customs Tariff.

Phase 2
A second phase, involving an additional $125 billion in tariffs, will be finalized after the comment period closes. Comments are accepted until March 25, 2025, submit yours here. Potentially affected products include:

• Passenger vehicles
• Steel and aluminum products
• Fruits and vegetables
• Aerospace products
• Beef, pork, and dairy
• Trucks, buses, recreational vehicles, and boats

Tariff Overview (US & Canada)

• 25% tariff on Canadian & Mexican goods, and 10% on Canadian energy resources
• 10% tariff on all China-origin goods (implemented February 4, 2025, in addition to existing tariffs)
• 20% tariff on China-origin goods effective March 4, 2025
• Steel & aluminum tariffs begin March 12, 2025
• De minimis exception removal has been delayed
• 25% tariff (Phase 1) on $30 billion worth of U.S. goods (Full List) imported into Canada effective March 13, 2025
• $125 billion (Phase 2) in tariffs on U.S. goods (Table 1) imported into Canada (applied against the U.S. if the Canadian goods tariff is not removed).

While USMCA remains in effect, these tariffs override any USMCA duty-free benefits. Even if goods qualify under USMCA, the new tariffs still apply.

Customs Surety Bonds

The implementation of new tariffs by the governments of the United States and Canada will significantly increase duty payments for importers, directly affecting their customs surety obligations. Understanding these obligations is essential to prevent disruptions in the import process.

Customs Surety Requirements in Canada

Under new framework of the CBSA Assessment and Revenue Management (CARM), all importers must soon secure their own customs bond to cover duty payments. To facilitate this transition, importers have a 180-day grace period ending on April 19, 2025, to secure a bond.

Given the introduction of a 25% tariff on U.S.-origin goods, duty payments will increase significantly. Canadian importers should review their current surety arrangements to ensure compliance. If an importer’s surety does not cover the required duty payment at the time of import, CBSA may detain the shipment until sufficient surety is provided or duties are paid in full.

Customs Surety Requirements in the U.S.

The imposition of universal tariffs on goods from Canada, Mexico, and China requires U.S. bondholders to reassess the sufficiency of their customs bonds. If an importer’s bond does not cover the value of duties at the time of import, U.S. Customs and Border Protection (CBP) may issue a written notification requiring an increase in bond coverage.

Importers generally have 30 days to adjust their surety. Failure to do so may result in bond termination, leaving the importer without coverage for customs duties. In such cases, goods will be held at the border until the importer secures adequate surety or pays the duties in full.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Please contact your Client Care Manager or our Global Trade Services Team gts@ghy.com, or call +1 (800) 667-0771.