- 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 Canadian and Mexican imports, with a lesser 10% tariff on oil and gas, which took effect on Mar. 4. Until at least Apr. 2, there will be no tariff on goods that claim and qualify for preferential treatment under CUSMA. This essentially means that things made in Canada with Canadian 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 Mar. 12.
- 25% tariff on global auto imports, including Canada, to take effect Apr. 2.
- Unspecified “reciprocal tariffs” against all countries that sell goods to America, to take effect Apr. 2.
- On Mar. 20, 2025, China will impose retaliatory duties of 25% on pork, fish, and seafood and 100% on canola oil and meal, and peas exported from Canada, representing $3.6 billion in imports from Canada (5.6% of China’s total imports from Canada) in 2024.
- In response to U.S. tariffs, the Government of Canada has proposed 25% tariffs on $155 billion worth of imported goods.
- 25% tariffs on $30 billion worth of goods went into effect on Mar. 12, 2025.
- The scope of the Canadian counter-tariffs will be increased to $155 billion if the current U.S. tariffs are maintained or additional tariffs are imposed.
- Feedback on the broader list of tariffs is being accepted until Apr. 2 and can be submitted through this form or by emailing consultations@fin.gc.ca, and including “U.S. Tariff Consultations” in the subject line.
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.
- 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.
- 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.
- Additional provincial and regional supports will be added to this list as they’re announced.
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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