The Default Answer: Most Canadian Goods Enter Duty-Free Under USMCA
USMCA — the agreement that replaced NAFTA in July 2020 — preserves the core principle of duty-free trade for goods that originate in North America. For the vast majority of Canadian exporters, this means filling out a one-page origin certification and paying nothing at the border. No tariff. No federal sales tax. No VAT equivalent. The US is unusual among developed economies in not charging a value-added tax on imports, which makes the landed cost calculation simpler than shipping to the UK, EU, or even back to Canada.
What changed from NAFTA to USMCA: the origin rules for autos got stricter, the agreement added a digital trade chapter, and the labor value content requirement for vehicles was new. For most other goods — machinery, food products, consumer goods, construction materials — the origin rules are functionally the same as they were under NAFTA. If it qualified for NAFTA, it almost certainly qualifies for USMCA.
For comparison with the reverse lane, see our US to Canada duty guide — Canadian importers face a more complex picture because Canada levies GST and provincial taxes on imports, which the US does not.
Three Product Categories Where Canadian Goods Do Face US Tariffs
No trade agreement covers everything. Here are the categories where Canadian exporters need to budget for actual duty payments — not because USMCA failed, but because these products sit outside its normal coverage:
| Product Category | Typical US Duty | Why It's Not Zero |
|---|---|---|
| Softwood lumber | 8%–18% AD/CVD | Separate anti-dumping & countervailing duty orders, renewed through each DOC administrative review. Not covered by USMCA tariff elimination because AD/CVD duties operate under a different legal framework — they're remedial, not protective. Rate is company-specific: a Canfor mill pays different than a West Fraser mill. Check the DOC's most recent review before quoting. |
| Steel & aluminum (Section 232) | 25% steel / 10% aluminum | Section 232 national security tariffs were imposed in 2018. Canada was initially exempted, briefly subjected to them, then re-exempted. As of 2026, Canadian steel and aluminum enter the US without Section 232 tariffs — but the exemption is conditional and quota-based. Export volumes above historical baselines can trigger reapplication. |
| Dairy, poultry, eggs (supply-managed) | Varies — TRQs | Canada's supply management system limits US dairy access into Canada, and the US maintains reciprocal restrictions. USMCA created small TRQ increases for US dairy but didn't eliminate US-side barriers. Above-quota tariffs on dairy can exceed 100%. |
Beyond these three: Canadian crude oil and natural gas enter the US duty-free. Electricity imports from Hydro-Québec and BC Hydro are tariff-free. Wheat, canola, beef, and pork clear without duties under USMCA. Most manufactured goods — machinery, chemicals, plastics, lumber-alternatives — pay zero at the border. For the shipping-cost side, the landed cost calculator lets you plug in freight and insurance to see the full CIF picture.
USMCA Origin Rules — How CBP Decides Your Product Qualifies
Qualifying for USMCA zero-duty treatment isn't automatic just because the goods shipped from a Canadian address. US Customs and Border Protection looks at where the product was substantially transformed, not where the label says. This trips up two groups of exporters in particular.
First, the re-exporter problem. A Canadian distributor buys widgets from China, warehouses them in Mississauga, and sells them to a US customer. CBP catches this during entry review and assesses Chinese MFN rates — which might be 25% under Section 301. Warehousing in Canada doesn't change origin. The product has to be made in Canada, or substantially processed there (i.e., transformed into a different HS code), to qualify as Canadian under USMCA.
Second, the regional value content threshold. For manufactured goods with non-North American components, USMCA requires at least 60% of the transaction value from North American materials and labor (75% for autos). Most Canadian-made products clear this easily. Where it gets tested: electronics assembled in Canada from Asian components; furniture made in Canada with imported hardware and fabrics; processed foods using imported ingredients.
Documentation: a USMCA certification of origin. No prescribed form — a statement on the commercial invoice works — but it must include certifier details, product description with HS code (first six digits), the specific origin criterion met, and a signed certification. Keep records for five years. CBP audits USMCA claims; if disallowed, you owe back duties plus interest. The EU-UK TCA Origin Rules guide shows how a similar concept works in the post-Brexit context.
The Automotive Exception — USMCA's Tighter Rules for Cars and Parts
Autos got singled out in the USMCA renegotiation. Under NAFTA: 62.5% regional value content. Under USMCA: 75% RVC — now fully phased in. Additionally, 70% of a producer's steel and aluminum purchases must be North American, and 40–45% of content must be made by workers earning at least $16/hour. For auto parts: 65–75% RVC depending on whether the part is "core" (engine, transmission, chassis: 75%) or "principal" (everything else: 65%). In practice, most Canadian auto parts and vehicles still qualify because the North American auto supply chain is deeply integrated — but the paperwork is heavier than under NAFTA.
Softwood Lumber — Four Decades of Dispute, Still No Resolution
The US-Canada softwood lumber dispute has been running since 1982. At its core: most Canadian timber is harvested from public (Crown) land, where stumpage fees are set by provincial governments. US producers argue this amounts to a subsidy. Canadian producers argue US mills simply can't meet domestic demand. Regardless of who you agree with, the practical effect is that softwood lumber carries AD/CVD duties outside the USMCA framework. These are company-specific — a BC producer might pay 8%; a Quebec mill 14%. The rate updates through annual DOC administrative reviews.
What counts: dimensional lumber (2x4s, 2x6s), boards, framing lumber, certain engineered wood products. What doesn't: finished furniture, pre-fabricated homes, log home kits, hardwood products (oak, maple, birch). If you're at the edge of the definition, get a CBP binding ruling before you ship. If you also handle non-lumber goods from Canada, see how furniture imports from China face a similar AD/CVD overlay — the legal mechanism is the same.
The $800 De Minimis — Why Canada→US Is Simpler Than the Reverse
Shipments valued at $800 or less enter duty-free under Section 321, regardless of origin. A Canadian e-commerce seller shipping a $600 bicycle to a US customer pays zero US customs duty — not because of USMCA, but because it's under the $800 threshold. This is dramatically simpler than the reverse lane, where a $200 US→Canada shipment faces full CBSA treatment. Canadian B2C exporters have a structural advantage in the US market.
Caveat: de minimis applies per person per day. Three $500 boxes to the same consignee on the same day = $1,500 entry. Stagger shipments across days or file formally with the USMCA claim. For the policy debate around this threshold, read our 2026 de minimis reform analysis.
Customs Entry Types for Canadian Shipments
Informal entry (Section 321 / Type 86): For shipments ≤$800. No bond, no broker required, minimal data. Default for B2C e-commerce.
Formal entry (Type 01): For shipments >$800. Requires a customs bond, CBP importer number (Form 5106), full entry documents. A $50,000 continuous bond costs ~$300–500/year. For the full procedure, see our US import customs clearance guide.
Related Trade Corridors
Frequently Asked Questions
Do most Canadian goods pay US customs duty?
No. Under USMCA, the overwhelming majority of goods that originate in Canada enter the United States with zero duty. The main exceptions: softwood lumber (AD/CVD), steel/aluminum if Section 232 quotas triggered, and certain agricultural TRQ products. File the USMCA origin certification. Products manufactured outside North America and transshipped through Canada do not qualify — they pay the MFN rate of the actual country of origin.
Does the US charge VAT or GST on imports from Canada?
No. The United States has no federal value-added tax or GST. Imports are not subject to any sales tax at the federal level. Some states may assess use tax, but this is collected at the state level, not by CBP. This makes the US a significantly simpler import destination than Canada, the UK, or EU member states. For how import VAT works in jurisdictions that do charge it, see our import VAT guide.
What paperwork does a Canadian exporter need for US customs?
At minimum: a commercial invoice with seller/buyer details, product description, quantity/value, country of origin, and HS code (first 6 digits). For USMCA: add the certification statement. For shipments >$800: customs bond and CBP importer number. Include the HS code on the invoice — it materially speeds CBP processing versus letting the broker classify at entry.
How do Section 232 tariffs affect Canadian steel and aluminum exports?
As of 2026, properly documented Canadian steel and aluminum enter the US without Section 232 tariffs — the USMCA exemption has been in effect since 2019. The exemption is quota-based: if exports surge past agreed baselines, the exemption can be suspended for that product. Verify current quota status through your US broker before shipping. Steel/aluminum products not originating in Canada may face Section 232 even if shipped from a Canadian address.