Hello Customers, Colleagues, and Friends,
We’re writing to inform you of newly implemented tariff measures affecting imports from Canada, as detailed in updated U.S. Customs and Border Protection (CBP) guidance issued late yesterday evening. These changes stem from Executive Order 14193, “Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border,” as amended on July 31, 2025.
New Tariff Rates on Canadian Goods – Effective August 1, 2025
CBP has confirmed the following changes to duty rates on Canadian-origin imports entered for consumption (or withdrawn from warehouse) on or after 12:01 a.m. Eastern Time on August 1, 2025:
- HTS 9903.01.10: A 35% ad valorem duty applies to nearly all imports from Canada, except:
- Articles covered by HTS 9903.01.11 through 9903.01.15,
- Goods for personal use included in accompanied baggage of arriving travelers.
- All items previously subject to the 25% tariff under this order will now be assessed 35%.
Enforcement Against Transshipment
For goods determined by CBP to have been transshipped to evade applicable duties on Canadian products:
- HTS 9903.01.16: A 40% ad valorem duty will apply, in lieu of other HTS lines listed above.
- CBP will use its discretion to identify and enforce these enhanced penalties when it suspects duty evasion through transshipment channels.
What This Means for You
- All Canadian-origin goods not explicitly excluded now face a 35% duty upon entry.
- Increased scrutiny is expected on transshipped goods. Importers must ensure accurate country-of-origin declarations and be prepared to provide documentation upon request.
Further updates expected. We will continue to monitor developments and provide timely updates as additional information becomes available. Please reach out to K&H if you have any questions regarding the recent tariff changes.
Sincerely, Your friends at Krenz and Hannan International