US-Canada Trade War
Since the United States initiated a trade war in March 2025 with Canada and other countries, the Canadian government has imposed a series of retaliatory tariffs on US imports.
Stay up to date: Canada’s response to U.S. tariffs on Canadian goods
Latest Update from the United States
As of August 1, 2025
The U.S. has increased tariffs on Canadian exports from 25% to 35% on goods that are non-compliant with CUSMA. Goods that are compliant with CUSMA have are exempt from tariffs.
Additionally, goods determined to have been transshipped to evade the tariffs will be subject to 40% tariffs.
Read official US executive order Amendment to Duties to Address the Flow of Illicit Drugs Across our Northern Border
Latest Retaliatory Measures from Canada
Jewellery and Watch Industry Specific
Canada Removes Retaliatory Tariffs on CUSMA Compliant Goods
August 22, 2025
As stated by Canadian Prime Minister Mark Carney on 22nd August,
2025 : Effective from September 1, 2025 “Canadian government will
now match the United States by removing all of Canada’s tariffs on U.S.
goods specifically covered under CUSMA. This decision will take effect
on September 1, 2025. In short, Canada and the U.S. have now re-
established free trade for the vast majority of our goods. “
Read full statement HERE.
April 17, 2025
Canada issued US surtax order(2025). This Order removes tariffs on
U.S. goods related to public health, safety, national security,
healthcare, manufacturing, processing or packaging.
Identifying Tariff Items
Canada has two separate lists of products that are subject to 25 per cent reciprocal tariffs imposed by the Government of Canada on March 4, 2025 and March 13, 2025.
Quick Tips For Searching For Your Product’s Tariff Item Number:
- Use the “Filter Items” option by searching keywords relevant to your product(s) on the Government of Canada lists mentioned above
- Keyword examples include: gold, silver, platinum, precious metals, waste and scrap of precious metals, pearls, precious stones, semi-precious stones, natural stones, synthetic stones, diamond, jewellery, watch, jewellery boxes, etc.
FAQs
What started the 2025 tariff war?
Canada retaliated with reciprocal 25% tariffs in two folds:
– On March 4, 2025, Canada added 25% tariffs on $30 billion worth of US products
– On March 13, 2025, Canada added 25% tariffs on another $29.8 billion worth of US products
–On April 17, 2025, Canada issued US surtax order(2025). This Order removes tariffs on U.S. goods related to public health, safety, national security,
healthcare, manufacturing, processing or packaging.
Official References:
-Order: United States Surtax Remission Order (2025) – SOR/2025-122
-Notice: Customs Notice 25-19
-Effective September 1, 2025 – Canada has exempted reciprocal tariffs on
goods compliant with CUSMA.
What do the reciprocal tariffs apply to?
A product must meet the rules in the Country of Origin Regulations (CUSMA Regulation) to be considered as an US product.
Note below is a summary and not the full text.
For full text please refer: Determination of Country of Origin
Goods are considered to come from a country if:
(a) They’re made or grown entirely in that country, like:
- – Minerals dug up there
- – Crops grown there
- – Animals born and raised there
- – Fish caught there
- – Goods made from waste or used items from that country
- – Items taken from the seabed or space by that country
(b) They’re made only with materials from that country.
(c) Any foreign materials used are changed enough (in the way trade rules require) during production.
(d) A special trade rule (called a Chapter Note) says they count as originating from that country.
How do I know if a product is from the US?
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is implementing its new Suspicious Transaction Report form, which can now be submitted through FINTRAC API report submission, an application programming interface for the secure system-to-system transfer of report information.
These important changes are part of FINTRAC’s multi-year plan to update its reporting forms as a result of regulatory amendments published in the Canada Gazette, Part II, in 2019, 2020 and 2022.
Suspicious Transaction Report form and new guidance
The new Suspicious Transaction Report form contains fields to reflect amended regulations that came into effect on June 1, 2021.
As a result of the changes to the Suspicious Transaction Report, FINTRAC published the following guidance:
This new guidance replaces the following two guidelines:
- What is a Suspicious Transaction Report
- Reporting suspicious transactions to FINTRAC
FINTRAC API report submission
FINTRAC API report submission now allows for the secure system-to-system transfer of report information to FINTRAC for the following report types:
- Suspicious Transaction Reports
- Large Cash Transaction Reports
- Large Virtual Currency Transaction Reports
FINTRAC continues the implementation of its modernized forms for the Electronic Funds Transfer Report and the Casino Disbursement Report, as per its schedule to implement change to reporting forms. The API report submission testing environment is available for the Electronic Funds Transfer Report and the Casino Disbursement Report. Technical documentation to implement API report submission for these report types is also available on FINTRAC’s website: Draft documents to help you prepare for changes to FINTRAC’s reporting forms.
Businesses that submit larger volumes of reports and that do not have access to FINTRAC API report submission should contact FINTRAC by email at F2R@fintrac-canafe.gc.ca.
For more information on these changes, consult Modernization and upcoming changes impacting reporting entities. For questions, please contact FINTRAC by telephone at 1-866-346-8722 (toll-free) or by email at guidelines-lignesdirectrices@
FINTRAC expects businesses to comply with all of the obligations under the Act and associated Regulations, but understands that many may face challenges as they transition to meeting these new obligations. Given the scope of the changes, and the impact on businesses, FINTRAC will exercise flexibility when assessing and enforcing the Act and associated Regulations.
FINTRAC would like to thank the businesses that have provided input on the implementation of the new requirements and on the related guidance. With their feedback, FINTRAC has been able to create better products that support the common goal of having a strong anti-money laundering and anti-terrorist financing regime that keeps Canada’s financial system secure.
What is the US's stance on Canadian goods imported into the US?
Imports that qualify under CUSMA (formerly NAFTA) remain exempt from tariffs.
Refer to section 3(d) of the Executive order
Has Canada exempted CUSMA products from the reciprocal tariffs?
Canada Removes Retaliatory Tariffs on CUSMA Compliant Goods
As stated by Canadian Prime Minister Mark Carney on 22 nd August,
2025 : Effective from September 1, 2025 “Canadian government will
now match the United States by removing all of Canada’s tariffs on U.S.
goods specifically covered under CUSMA. This decision will take effect
on September 1, 2025. In short, Canada and the U.S. have now re-
established free trade for the vast majority of our goods. “
Read full statement HERE.
Who in charge of collecting Canada’s reciprocal tariffs?
Canada’s reciprocal tariffs administration is the responsibility of the Canada Border Services Agency (CBSA).
Applicable resources:
Customs Notice 25-10: United States Surtax Order (2025-1)
Customs Notice 25-11: United States Surtax Order (Steel and Aluminum 2025)
How do individuals pay tariffs, duties and taxes on goods being imported into Canada?
Please refer to guidance on the Government of Canada website.
Canadian tariffs of 25% on goods from the United States: How they apply at the border
What support is available for Canadian businesses and workers affected by the tariffs?
The Order refers to omissions of surtax (tariffs) with respect to public
health, public safety and national security, health care, manufacture, processing or packaging.
Additional details regarding the application of the Order are outlined in the
accompanying Customs Notice 25-19.
How is this applicable to the jewellery industry?
Refer section 6 of Customs Notice 25-19
How to make/apply for a claim?
The claimant must keep and maintain supporting documentation
substantiating this fact (e.g., contract for sale), which may be requested by
the CBSA.
For more details refer to Customs Notice 25-19: United States Surtax
Remission Order (2025) (see sections 27-33 under “How to apply”)
What does the U.S. Surtax Remission Order and Customs Notice 25-19 contain?
High-risk jurisdictions subject to a call for action and a statement on jurisdictions under increased monitoring. Businesses should consider this information in determining whether to send a suspicious transaction report to FINTRAC.
Consult the full text of the advisory at the following link: https://fintrac-canafe.canada.
Introductory Resources
For more information about this ever changing situation, use the resources below.
Need Help with Customs?
Your customs broker should be able to assist you with tariff related questions for your shipments.
If your customs broker is FedEx, contact FedEx using the information below.
Clearance Helpline
clearancehelpline@corp.ds.fedex.com
FedEx Canada Clearance Helpline
1-800-561-0268
You can also contact Canada Border Services Agency (CBSA) directly using the information below.
Canada Customs Information
1-800-461-9999
UPDATES
February 5, 2026 - US Surtax Remission
Canada retaliated with reciprocal 25% tariffs in two folds:
– On March 4, 2025, Canada added 25% tariffs on $30 billion worth of US products
– On March 13, 2025, Canada added 25% tariffs on another $29.8 billion worth of US products
–On April 17, 2025, Canada issued US surtax order(2025). This Order removes tariffs on U.S. goods related to public health, safety, national security,
healthcare, manufacturing, processing or packaging.
Official References:
-Order: United States Surtax Remission Order (2025) – SOR/2025-122
-Notice: Customs Notice 25-19
-Effective September 1, 2025 – Canada has exempted reciprocal tariffs on
goods compliant with CUSMA.
What do the reciprocal tariffs apply to?
A product must meet the rules in the Country of Origin Regulations (CUSMA Regulation) to be considered as an US product.
Note below is a summary and not the full text.
For full text please refer: Determination of Country of Origin
Goods are considered to come from a country if:
(a) They’re made or grown entirely in that country, like:
- – Minerals dug up there
- – Crops grown there
- – Animals born and raised there
- – Fish caught there
- – Goods made from waste or used items from that country
- – Items taken from the seabed or space by that country
(b) They’re made only with materials from that country.
(c) Any foreign materials used are changed enough (in the way trade rules require) during production.
(d) A special trade rule (called a Chapter Note) says they count as originating from that country.
June 4, 2025 - US Surtax Remission
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is implementing its new Suspicious Transaction Report form, which can now be submitted through FINTRAC API report submission, an application programming interface for the secure system-to-system transfer of report information.
These important changes are part of FINTRAC’s multi-year plan to update its reporting forms as a result of regulatory amendments published in the Canada Gazette, Part II, in 2019, 2020 and 2022.
Suspicious Transaction Report form and new guidance
The new Suspicious Transaction Report form contains fields to reflect amended regulations that came into effect on June 1, 2021.
As a result of the changes to the Suspicious Transaction Report, FINTRAC published the following guidance:
This new guidance replaces the following two guidelines:
- What is a Suspicious Transaction Report
- Reporting suspicious transactions to FINTRAC
FINTRAC API report submission
FINTRAC API report submission now allows for the secure system-to-system transfer of report information to FINTRAC for the following report types:
- Suspicious Transaction Reports
- Large Cash Transaction Reports
- Large Virtual Currency Transaction Reports
FINTRAC continues the implementation of its modernized forms for the Electronic Funds Transfer Report and the Casino Disbursement Report, as per its schedule to implement change to reporting forms. The API report submission testing environment is available for the Electronic Funds Transfer Report and the Casino Disbursement Report. Technical documentation to implement API report submission for these report types is also available on FINTRAC’s website: Draft documents to help you prepare for changes to FINTRAC’s reporting forms.
Businesses that submit larger volumes of reports and that do not have access to FINTRAC API report submission should contact FINTRAC by email at F2R@fintrac-canafe.gc.ca.
For more information on these changes, consult Modernization and upcoming changes impacting reporting entities. For questions, please contact FINTRAC by telephone at 1-866-346-8722 (toll-free) or by email at guidelines-lignesdirectrices@
FINTRAC expects businesses to comply with all of the obligations under the Act and associated Regulations, but understands that many may face challenges as they transition to meeting these new obligations. Given the scope of the changes, and the impact on businesses, FINTRAC will exercise flexibility when assessing and enforcing the Act and associated Regulations.
FINTRAC would like to thank the businesses that have provided input on the implementation of the new requirements and on the related guidance. With their feedback, FINTRAC has been able to create better products that support the common goal of having a strong anti-money laundering and anti-terrorist financing regime that keeps Canada’s financial system secure.
April 2, 2025 - US Tariff Update
Imports that qualify under CUSMA (formerly NAFTA) remain exempt from tariffs.
Refer to section 3(d) of the Executive order
March 13, 2025 - US-Canada Trade War: Timeline of Tariffs
Canada Removes Retaliatory Tariffs on CUSMA Compliant Goods
As stated by Canadian Prime Minister Mark Carney on 22 nd August,
2025 : Effective from September 1, 2025 “Canadian government will
now match the United States by removing all of Canada’s tariffs on U.S.
goods specifically covered under CUSMA. This decision will take effect
on September 1, 2025. In short, Canada and the U.S. have now re-
established free trade for the vast majority of our goods. “
Read full statement HERE.
March 10, 2025 - Canadian Government rolls out initiatives to support businesses
Canada’s reciprocal tariffs administration is the responsibility of the Canada Border Services Agency (CBSA).
Applicable resources:
Customs Notice 25-10: United States Surtax Order (2025-1)
Customs Notice 25-11: United States Surtax Order (Steel and Aluminum 2025)
March 7, 2025 - US Temporarily pauses 25% Tariffs until April 2, 2025
Please refer to guidance on the Government of Canada website.
Canadian tariffs of 25% on goods from the United States: How they apply at the border
March 4, 2025 - Canada Imposes Countermeasures
The Order refers to omissions of surtax (tariffs) with respect to public
health, public safety and national security, health care, manufacture, processing or packaging.
Additional details regarding the application of the Order are outlined in the
accompanying Customs Notice 25-19.
How is this applicable to the jewellery industry?
Refer section 6 of Customs Notice 25-19
How to make/apply for a claim?
The claimant must keep and maintain supporting documentation
substantiating this fact (e.g., contract for sale), which may be requested by
the CBSA.
For more details refer to Customs Notice 25-19: United States Surtax
Remission Order (2025) (see sections 27-33 under “How to apply”)
February 3, 2025 - US Tariffs on Canada Delayed for 30 Days
High-risk jurisdictions subject to a call for action and a statement on jurisdictions under increased monitoring. Businesses should consider this information in determining whether to send a suspicious transaction report to FINTRAC.
Consult the full text of the advisory at the following link: https://fintrac-canafe.canada.
February 3, 2025 - President Trump’s 25% Tariffs on Canada
High-risk jurisdictions subject to a call for action and a statement on jurisdictions under increased monitoring. Businesses should consider this information in determining whether to send a suspicious transaction report to FINTRAC.
Consult the full text of the advisory at the following link: https://fintrac-canafe.canada.
