Guidance on U.S. Energy Imports from Canada

Trade Update • March 25, 2025

he U.S. Customs and Border Protection (CBP) has issued updated guidance regarding energy and energy resource imports from Canada. Effective March 4, 2025, at 12:01 a.m. Eastern Time, certain Canadian-origin energy products will be subject to a new additional tariff, unless they qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA).

Guidance – Canada Energy Imports

Energy and energy resource products that are the product of Canada and qualify under USMCA provisions are not subject to additional tariffs. These goods will continue to enter the U.S. under current tariff schedules without any new duty assessments.

New Tariff Provision for Non-USMCA Qualified Canadian Energy Imports

For Canadian-origin energy products that do not meet USMCA qualification criteria, a 10% ad valorem additional duty will be applied under HTSUS classification 9903.01.13 if they are entered for consumption or withdrawn from a warehouse for consumption on or after the effective date.

Covered Products Under HTSUS 9903.01.13

The HTSUS subheading 9903.01.13 applies to imports of the following Canadian-origin energy and energy resource products:

• Crude oil
• Natural gas
• Lease condensates
• Natural gas liquids
• Refined petroleum products
• Uranium
• Coal
• Biofuels
• Geothermal heat
• Kinetic movement of flowing water (e.g., hydroelectric energy)
• Critical minerals as defined by 30 U.S.C. §1606(a)(3)

A non-exhaustive list of specific HTSUS subheadings applicable under this provision is included in the accompanying spreadsheet:

Attachment_IEEPA Canada Energy and Energy Resources.xlsx.
It should be noted that not all goods classified under the listed HTSUS numbers are subject to the additional duty. For instance, some metals of Chapters 72 and 76 that are alloyed with rare earth elements fall under the scope, while others do not.

Classification Guidance and Rulings

Importers uncertain whether their goods qualify as energy or energy resources under HTSUS 9903.01.13 are encouraged to seek a classification ruling from U.S. Customs and Border Protection (CBP). GHY can provide support to file a ruling request. These rulings help clarify whether specific products fall within the scope of the new tariff provision.

For instructions on submitting ruling requests, visit the CBP page: Requirements for Electronic Ruling Requests | U.S. Customs and Border Protection. Questions regarding this tariff change may be directed to the U.S. Customs and Border Protection at Traderemedy@cbp.dhs.gov.

Executive Orders Adjusting Tariffs

Northern Border: Adjustments to Tariffs on Canadian Imports

Executive Order Amendment: The administration has modified Executive Order 14193, which initially imposed duties to address the flow of illicit drugs across the northern border.

Key Provisions:

• Goods from Canada that qualify for duty-free entry under USMCA will not be subject to additional tariffs.
• The tariff on potash imports from Canada has been reduced from 25% to 10%.
• Changes take effect from March 7, 2025, at 12:01 a.m. EST.

Full Executive Order
CBP Guidance: Additional Duties on Imports from Canada – USMCA Qualifying Products and Potash
Federal Register Notice: Additional Duties on Products of Canada

Tariff Overview (US & Canada)

• 25% tariff on Canadian & Mexican goods (paused), and 10% on Canadian energy resources (effective March 4, 2025, unless qualify for preferential treatment under USMCA).
• 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). The comment period is open until March 25, 2025, submit yours here

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

Tariff Stacking

Tariffs can ‘stack’, therefore in the case of steel and aluminum (and certain derivatives), the total duty upon entering the U.S. could reach 50% after March 12, 2025.

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 assist in securing binding classification rulings with Customs to provide clarity and certainty in product classification. In addition, we employ tariff engineering techniques to optimize 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.