Are you importing goods from Canada to the United States? If so, you’ve probably noticed some significant changes recently. The trade landscape between these two neighbors has shifted dramatically, and understanding the new rules could save you thousands of dollars – or help you avoid costly surprises.
The trade relationship between the US and Canada is massive – we’re talking about over $434 billion worth of Canadian commodities entering the United States in 2024 alone! But here’s what many people don’t know: recent changes in 2025 have significantly impacted how much you’ll pay in duties. Considering all of this, how can we calculate new tariffs and duties? First of all, you need to find the most accurate HTS code for your product. AI HTS Code Finder Tool will help you in this way. It’s free and you’ll be amazed by the result.
What Does the USA Actually Import from Canada?
Before we dive into the duty calculations, let’s take a moment to appreciate just how interconnected the US and Canadian economies really are. Did you know that Canada exported over $434 billion worth of goods to the United States in 2024 alone? That’s roughly equivalent to the GDP of entire countries! Since USA is one of Canada’s largest trade partners, you have many profitable options to choose from.
| Product Category | Specific Items | Notes |
| Energy & Raw Materials | Petroleum and mineral-based fuels, Crude oil, Natural gas, Uranium, Coal, Wood and lumber, Aluminum | Canada’s biggest export category to the US |
| Vehicles & Machinery | Non-tramway/railway vehicles (automobiles), Nuclear reactors and related machinery, Construction equipment parts | Major manufacturing exports |
| Food & Agriculture | Cereals and grains, Dairy products (specialty cheeses), Various foodstuffs, Animals | Subject to FDA regulations |
| Materials & Minerals | Precious stones and metals, Potash (fertilizers), Critical minerals | Essential for US manufacturing |
| Consumer Goods | Electronics, Clothing, Jewelry, Garden umbrellas | Wide variety of finished products |
| Specialty Products | Biofuels, Geothermal heat resources, Informational materials (films, publications) | Niche but important categories |
How Much Are Import Duties from Canada?
Here’s where things get interesting – and potentially expensive. The duty structure for Canadian imports underwent a major overhaul in March 2025, and the changes are significant enough that they could impact your bottom line.
The Traditional Duty System
Historically, import duties from Canada were determined by the Harmonized Tariff System (HTS) code for each specific product. Under the United States-Mexico-Canada Agreement (USMCA), many goods could enter the US duty-free or at preferential rates.
Think of the HTS code as a product’s “passport” – it tells customs officials exactly what the item is and what duty rate should apply. These rates varied widely:
- Some products: 0% (duty-free)
- Others: anywhere from 2% to 25% or more
- Special cases: fixed amounts per unit rather than percentages
Discover more: What is a Control List?
The March 2025 Changes: New Duty Rate from Canada to U.S.
On March 4, 2025, everything changed with new Executive Orders that imposed additional duties on Canadian imports. This wasn’t just a small adjustment – it was a fundamental shift in trade policy.
| Product Category | Additional Duty Rate | HTS Classification |
| Most Canadian Products | 25% | 9903.01.10 |
| Energy/Energy Resources | 10% | 9903.01.13 |
Important: These additional duties are applied on top of any existing duties, not instead of them. So if a product previously had a 5% standard duty, it now faces 5% + 25% = 30% total duty (unless it qualifies for an exemption).
What Counts as “Energy Resources”?
The 10% additional duty applies to a broad range of energy-related imports:
- Crude oil and natural gas
- Lease condensates and natural gas liquids
- Refined petroleum products
- Uranium and coal
- Biofuels and geothermal heat
- Even “the kinetic movement of flowing water” (hydroelectric power)
- Critical minerals
Which Goods Are Exempt from the New Duties?
Not everything gets hit with these additional duties. The government carved out several important exceptions – and understanding these could save you significant money.
| Exemption Category | Description | HTS Classification |
| Personal Belongings | Items for personal use in accompanied baggage | Excluded from 9903.01.10 |
| Humanitarian Donations | Food, clothing, medicine for human suffering relief | 9903.01.11 |
| Information Materials | Publications, films, artworks, news feeds | 9903.01.12 |
| Small Shipments | Individual shipments under $800 USD | De minimis exemption |
| Certain Chapter 98 Goods | Specific manufacturing/repair situations | Various exceptions apply |
Here’s a tip that could save you money: the de minimis exemption still applies to the new additional duties. If your shipment is valued at less than $800 USD, you’re generally exempt from all duties, including the new 25% and 10% additional rates.
Are you importing small quantities? This exemption could be a game-changer for your business strategy. Do you think you’re going to need an importer of record U.S. customs?
How to Calculate Import Duty from Canada to U.S.?
Let’s break down the calculation process with real examples, because nothing beats seeing the numbers in action.
Step 1: Determine Your Standard HTS Duty
Every product has an HTS code that determines its base duty rate. For example:
- Garden umbrellas might have a 6.5% duty rate
- Certain electronics might be duty-free under USMCA
- Softwood lumber has additional anti-dumping duties around 14%
Step 2: Apply Additional Duties (Post-March 2025)
Unless your goods qualify for an exemption, you’ll add:
- 25% for most products, OR
- 10% for energy resources
Step 3: Calculate the Total
Let’s look at some examples:
Example 1: Garden Umbrellas (Pre-March 2025)
- Shipment value: $28,000
- Standard HTS duty: 6.5%
- Duty owed: $28,000 × 0.065 = $1,820
Example 2: Garden Umbrellas (Post-March 2025)
- Shipment value: $28,000
- Standard HTS duty: 6.5% = $1,820
- Additional duty: 25% = $7,000
- Total duty: $8,820
That’s a difference of $7,000! Can you see why understanding these changes is crucial for your business planning?
Example 3: Energy Products
- Shipment value: $100,000 of crude oil
- Standard HTS duty: 0% (assume duty-free under USMCA)
- Additional duty: 10% = $10,000
- Total duty: $10,000
| Situation | Calculation Method |
| Anti-dumping/Countervailing Duties | Add these on top of standard + additional duties |
| Tariff Rate Quotas | Higher rates apply once quota limits are exceeded |
| Chapter 98 Entries | Additional duties may apply only to specific value components |
| Maquiladora/Repair Services | Additional duties may apply only to labor/service value |
What About Drawback and Exclusion Processes?
Here’s some important news: there’s no duty drawback available for the new additional duties imposed in March 2025. This means once you pay these duties, you can’t get them back through traditional drawback programs.
Additionally, there’s no exclusion process for these duties. The exemptions we discussed earlier are automatic based on the nature of your goods or shipment value – you can’t apply for special treatment beyond what’s already built into the system.
How to Accurately Calculate Canada to U.S. Customs Fees?
- Verify your HTS code – A wrong classification could cost you significantly. Use AI HTS Code Finder Tool to find the most accurate code matching your product description.
- Check if your goods qualify for exemptions – Especially the $800 de minimis rule
- Consider timing – Can you structure shipments to stay under exemption thresholds?
- Budget for the full duty amount – Don’t get caught off-guard by the additional 25% or 10%
Remember that U.S. Customs and Border Protection (CBP) or your courier will provide the final calculation and payment instructions. While you can estimate using the information in this guide, they have the final word on what you owe.
Import duties aren’t your only expense. Factor in:
- Customs brokerage fees
- Import customs bonds
- Permit application costs
- Transportation and handling fees
FAQ
- Do I have to pay duty when shipping from Canada to the US?
Yes, you must pay customs duty and taxes on most goods shipped from Canada to the US. The United States Customs and Border Protection (CBP) enforces these rules, and duties vary by country of origin and type of product. However, goods valued under $800 are generally duty-free under Section 321. - What’s the minimum threshold for import duty to the US?
The minimum threshold for import tax is $800. Goods valued below that are not subject to duty. This is known as the de minimis threshold and applies to most personal and commercial shipments. - How are customs duties calculated?
Customs duties vary by country of origin and type of product. You’ll need to know the Harmonised Tariff Schedule or HTS code to calculate the exact rate due. The duty is typically calculated as a percentage of the goods’ value. - What documents do I need for shipping to the US?
All formal shipments from Canada to the US should have an Importer ID Number (either your social security number or IRS business registration number) along with proper commercial invoices and customs declarations. - Are there any special tariffs affecting Canada-US trade in 2025?
Yes, there’s a significant trade dispute ongoing. As of March 4, 2025, Canada has imposed a 25% surcharge on approximately CA$30 billion worth of US-origin goods in response to US tariffs on Canadian products. This affects shipping in both directions. - What products are affected by the 2025 tariffs?
Products hit with the new Canadian tariffs include alcohol and food products (e.g., liquor, vegetables), steel, aluminum, clothing, appliances, furniture, and more. US vehicles and auto parts may also face additional duties. - Do USMCA/CUSMA rules still apply?
If your goods qualify under the USMCA (also known as CUSMA) and meet the rules of origin, they may be exempt from the new surtax. This applies to goods produced or substantially transformed in the US, Canada, or Mexico. - What are the personal exemption limits when returning to the US?
A returning US resident is eligible for the $800 duty-free personal exemption every 31 days, having remained for no less than 48 hours beyond the territorial limits of the United States. This includes up to 200 cigarettes and 100 cigars. - Can I bring duty-free items from Canada as a US resident?
If you are returning from Canada or Mexico, your goods are eligible for free or reduced duty rates if they were grown, manufactured, or produced in Canada or Mexico under NAFTA/USMCA rules. - What about gifts sent from Canada to the US?
No duties and taxes are assessed if the value of the gift is equal to or less than USD$100 when shipping gifts to the US. The shipment must be clearly marked as a gift. - Why are my shipping costs so high?
Many people have found the various charges and fees levied to be higher than they expected, and sometimes exceed the cost of their purchase(s). This includes customs duties, brokerage fees, handling charges, and carrier fees that can add up quickly. - What are brokerage fees and can I avoid them?
Brokerage fees cover the cost of the customs clearing process, which includes paperwork, tax, and customs duties. These fees apply to regular ground shipments and cost as much as $100 per shipment. You can potentially avoid high brokerage fees by self-clearing your parcels. - Can sellers misrepresent the value to save on duties?
Many sellers offer to misrepresent costs in an effort to save the purchaser from having to pay duty, but this is illegal. Always declare accurate values to avoid legal issues, fines, and penalties. - How long does customs clearance take?
Customs clearance time varies depending on the type of goods, documentation accuracy, and current processing volumes. When there’s a problem, there is a tracking number that can help resolve the matter. Proper documentation and accurate declarations help speed up the process. - Are electronics from Canada subject to duty in the US?
According to the United States Customs and Border Protection, clothing, jewelry, electronic equipment, and vehicles are not duty-free items. Electronics will be subject to applicable duties based on their HTS classification and value over $800. - What about household goods and personal effects?
Household effects may be imported duty-free if you used them abroad for no less than one year and they are not intended for any other person or for sale. However, clothing, jewelry, photography equipment, portable radios, and vehicles are considered personal effects and cannot be brought in duty-free as household effects. - Can I ship alcohol from Canada to the US?
Federal law prohibits business-to-private consumer shipping of alcoholic beverages by mail within the United States. Personal quantities may be allowed under personal exemptions with specific limits and proper documentation. - How can I minimize customs charges?
While you cannot completely avoid customs charges, you can minimize them by: ensuring accurate tariff classification, taking advantage of USMCA benefits for qualifying goods, staying under the $800 threshold when possible, and using proper shipping methods to avoid excessive brokerage fees. - Should I use courier services or postal mail?
Goods shipped by courier, express, or other commercial service usually are expedited through CBP by a customs broker hired by that commercial service. While faster, courier services often have higher fees. Postal services may have lower fees but longer processing times. - What happens if I don’t pay customs duties?
If you owe Customs duty, you must pay it before the conclusion of your CBP processing. Failure to pay can result in package delays, returns to sender, or seizure by customs authorities. You can pay in US currency, personal check drawn on a US bank, or other accepted payment methods.
