Calculate Import Duty: Canada to USA (2026 Guide)
Canada to USA duty in 2026 under USMCA: exemption from Section 122, softwood lumber, energy, and worked example.
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Canada is the United States' largest trading partner by total goods value (just ahead of Mexico). Vehicles, energy (crude oil, natural gas), machinery, lumber, and aluminum dominate the lane. Under USMCA, the vast majority of Canadian-origin goods enter the US duty-free, and the 2026 Section 122 proclamation explicitly exempts USMCA-originating goods.
This guide covers the calculation, the major sectoral disputes (softwood lumber and dairy), and a worked example. The calculator handles the math.
The duty layers for Canada to USA
For a USMCA-qualifying Canadian entry in 2026:
- USMCA preference: zero MFN for qualifying goods.
- Section 122: exempted for USMCA-originating goods.
- Section 232: applies to steel and aluminum (with Canadian TRQ arrangement).
- AD/CVD: applies to specific products (softwood lumber being the largest by volume).
- MPF: 0.3464 percent capped 614.35 USD.
- HMF: 0.125 percent on sea cargo only. Most Canadian imports cross by truck or rail, so no HMF.
For non-qualifying Canadian goods (e.g., third-country product shipped through a Canadian warehouse), MFN plus 15 percent Section 122 applies as if no FTA.
USMCA qualification: same rules as Mexico
The qualification path is identical to Mexico to USA. See USMCA Origin Rules: What Qualifies and What Doesn't for the full guide. Brief summary:
- Wholly obtained or produced in North America.
- Produced from originating materials only.
- Produced with non-originating materials that undergo the required tariff shift and meet the RVC threshold (typically 60 percent transaction value or 50 percent net cost).
Automotive: 75 percent RVC net cost, 40 percent LVC, 70 percent North American steel/aluminum.
The softwood lumber AD/CVD order
Canadian softwood lumber has been subject to US AD/CVD orders for decades, reflecting an ongoing trade dispute over Canadian provincial timber pricing (stumpage). The current order is from 2017, with eight administrative reviews completed by 2026.
Combined AD plus CVD rates as of the ninth review (final results expected mid-2026):
- Canfor: combined approximately 7.8 percent
- Resolute: combined approximately 7.6 percent
- West Fraser: combined approximately 8.1 percent
- All others: combined approximately 14.5 percent
Cash deposits are made at the rate applicable to the specific producer at the time of entry. The Commerce Department updates rates after each annual review.
USMCA does not exempt softwood lumber from AD/CVD. The duty deposit applies regardless of FTA preference.
Worked example: 1,500,000 USD of Canadian-origin auto parts
A Canadian Tier-1 supplier ships powertrain components to a US assembly plant. Total invoice 1,500,000 USD FCA Windsor, 18,000 USD trucking to Detroit. HTS 8708.40.50 (transmissions, parts), qualifies under USMCA per the producer's certification.
| Charge | Rate | Base | Amount (USD) |
|---|---|---|---|
| MFN duty (USMCA) | 0% | 1,500,000 | 0.00 |
| Section 122 (USMCA exempt) | 0% | 1,500,000 | 0.00 |
| MPF | 0.3464% | 1,500,000 | 614.35 (capped) |
| HMF (land entry) | 0% | 0.00 | |
| Total duty + fees | 614.35 |
Compare to a similar import from Germany under the same HTS: 1,500,000 USD at MFN 2.5 percent plus Section 122 15 percent = 17.5 percent ad valorem = 262,500 USD duty plus fees. The Canadian USMCA option saves 261,886 USD per shipment.
Run your own numbers in the calculator.
Worked example: 800,000 USD of Canadian softwood lumber
A Canadian sawmill ships dimensional lumber. Total invoice 800,000 USD FOB Vancouver. HTS 4407.10.01 (softwood lumber). MFN 0 percent. USMCA does not change MFN. AD/CVD combined rate 7.8 percent for Canfor.
| Charge | Rate | Base | Amount (USD) |
|---|---|---|---|
| MFN duty | 0% | 800,000 | 0.00 |
| Section 122 (USMCA exempt) | 0% | 800,000 | 0.00 |
| AD/CVD combined | 7.8% | 800,000 | 62,400.00 |
| MPF | 0.3464% | 800,000 | 614.35 (capped) |
| HMF | 0.125% | 800,000 | 1,000.00 |
| Total duty + fees | 64,014.35 |
The 7.8 percent AD/CVD dominates the bill. Canadian softwood lumber importers should subscribe to producer-specific rate updates and budget for retroactive adjustments after each annual review.
Section 232 and Canadian steel/aluminum
Canada has been alternately exempt and included in Section 232. The 2025 melt-and-pour rule means Section 232 follows the source of melt, not just the country of fabrication.
Canada's TRQ arrangement (revised under the 2024 EU-Canada-US trilateral framework, since modified):
- Steel: roughly 6 million tons annual TRQ, exempt from Section 232 within quota.
- Aluminum: roughly 700,000 tons annual TRQ.
Within quota: 0 percent Section 232. Over quota: 25 percent. Quarterly fills.
Canadian-finished steel using non-Canadian melt does not qualify for the TRQ and pays 25 percent Section 232.
High-traffic HS chapters for Canada to USA
Chapter 27: mineral fuels (the big one)
Crude oil, refined petroleum, natural gas. MFN tiny specific duties (5.25 cents/barrel for crude). USMCA 0 percent. The volume is enormous; the duty bill is tiny.
Chapter 87: vehicles and parts
USMCA-qualifying. Auto industry is the second-largest Canadian export to the US by value.
Chapter 84 and 85: machinery and electronics
Most lines USMCA-qualifying. Capital equipment, control systems.
Chapter 44: wood
Softwood lumber (AD/CVD). Hardwood lumber (mostly 0 percent MFN). OSB and plywood (USMCA-qualifying).
Chapter 31: fertilizers
Potash from Saskatchewan. MFN typically 0 percent. USMCA 0 percent.
Chapter 76: aluminum
Canadian aluminum smelters (Alcan, etc.). Section 232 TRQ; within-quota 0 percent.
Chapter 73: iron and steel articles
Section 232 TRQ; within-quota 0 percent. Specialty steel products often USMCA-qualifying.
Chapter 19, 20, 21: prepared foods
Many lines USMCA 0 percent. Specific TRQ products (dairy, sugar containing products) have over-quota high specific duties.
Dairy: the lingering dispute
USMCA created tariff-rate quotas for US dairy exports to Canada and reciprocal limited access. Canada-to-USA dairy flows have always been small because of US dairy tariff protection. Most Canadian dairy entering the US is under USMCA TRQ at zero in-quota; over-quota faces high specific duties (typically 250 to 300 percent ad valorem equivalent).
Customs procedures
The vast majority of Canada-USA cargo crosses by truck or rail at land borders. Standard CBP entry. ACE eManifest required. For high-volume corridors (Detroit-Windsor, Buffalo-Fort Erie, Pacific Highway), the C-TPAT and FAST programs provide expedited processing.
How the calculator handles this lane
When you select Origin: Canada and Destination: USA in the calculator:
- Asks if USMCA-qualifying.
- If qualifying: 0 percent MFN, 0 percent Section 122.
- If not qualifying: MFN HTS plus 15 percent Section 122.
- Checks softwood lumber and other Canada-specific AD/CVD.
- Checks chapter 72, 73, 76 for Section 232 with Canadian TRQ status.
- Notes typical land-border entry (no HMF).
- Adds MPF.
Related guides
- Calculate Import Duty: Mexico to USA
- USMCA Origin Rules: What Qualifies and What Doesn't
- Steel HS Codes Under Section 232
- Aluminum HS Codes Under Section 232
- What is Section 122? The 2026 Reciprocal Tariff Explained
- FTA Preferences: Saving 5-25% on Duty
Run a Canada-to-USA number in the calculator.
Frequently asked questions
Are USMCA-qualifying Canadian goods exempt from Section 122?
Yes. The February 2026 Section 122 proclamation explicitly carves out USMCA-originating goods from both Canada and Mexico. Qualifying Canadian-origin goods pay 0 percent duty on most non-restricted lines.
What is the duty on Canadian softwood lumber?
Softwood lumber from Canada is subject to a combined antidumping and countervailing duty order. As of 2026 the combined rates run roughly 7 to 9 percent for most producers, set in the ninth administrative review. Section 122 does not stack on AD/CVD.
Does Section 232 apply to Canadian steel?
Canadian steel has been on and off Section 232. As of June 2026 the 2025 melt-and-pour rule applies. Canada operates under a TRQ arrangement. Within quota: 0 percent. Over quota: 25 percent.
Is Canadian crude oil dutiable?
Crude oil (HTS 2709.00) MFN 5.25 cents per barrel (specific duty, very low). USMCA preferential 0 percent for qualifying. Section 122 does not apply because USMCA goods are exempt.
How do I claim USMCA on Canadian imports?
Same as for Mexican imports: USMCA certification of origin on file, claim made on entry summary. Certification can be by producer, exporter, or importer; nine specified data elements required.
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