Goods entered free of duty under USMCA are excluded from the Canada border-duty layer and the Section 122 surcharge. Non-USMCA goods need a separate check for the Canada border-duty order, Section 122, and product-specific Section 232 coverage.
Do not treat Canada as a single flat-rate origin. Verify USMCA eligibility, energy or potash treatment, Section 232 steel/aluminum or auto scope, Chapter 99 headings, valuation, AD/CVD, quota, and broker review.
Canada border-duty order / USMCA split
product specific0% if USMCA; 25% non-USMCA; 10% energy/potash
USMCA-qualifying goods entered free of duty are excluded from the additional Canada border duty. Non-USMCA goods remain subject to the amended Canada order, with lower rates for energy resources and potash.
2025-03-07 - TBD
Classify and document USMCA eligibility before modeling this layer. Non-USMCA goods may also need a Section 122 check unless a product exception or Section 232 coverage applies.
Official source: Federal Register, EO 14193 as amended by EO 14231Section 122 temporary surcharge
product specific0% if USMCA; 10% otherwise
The Section 122 surcharge excludes Canada goods entered free of duty under USMCA and excludes goods already subject to Section 232 tariffs.
2026-02-24 - 2026-07-24
For non-USMCA goods, model Section 122 only after checking product exceptions and Section 232 scope.
Official source: Federal Register, Proclamation 10984 / document 2026-03824Section 232 steel and aluminum
product specific50%
Steel, aluminum, and derivative articles covered by the Section 232 proclamations.
2025-06-04 - TBD
Product-specific national-security duties. Section 122 should not be stacked on top of these Section 232 duties.
Official source: Federal Register, Proclamation 10947 / document 2025-10524Section 232 automobiles and auto parts
product specific25%
Automobiles and covered automobile parts listed in the Section 232 auto proclamation and implementing notices.
2025-04-03 - TBD
For USMCA vehicles, review U.S. content documentation and applicable implementation guidance before estimating.
Official source: Federal Register, Proclamation 10908 / document 2025-05930