Active Tariff Situations
These are the tariff situations actively affecting Canadian businesses as of March 2026. Situations change — our weekly reports track developments in real time.
Steel: 25% US tariff on Canadian steel. Aluminum: 25% US tariff on Canadian aluminum. These tariffs apply despite CUSMA — steel and aluminum are explicitly excluded from CUSMA's tariff-free provisions. Canada's retaliatory tariffs on US steel and aluminum remain in effect as negotiations continue. Canadian manufacturers using US steel or aluminum inputs may apply for temporary remission (see below).
| Product / Sector | Direction | Rate | Status | Notes |
|---|---|---|---|---|
| Steel (most products) | Canada → US | 25% | Active | Section 232. No CUSMA exemption. Retaliatory Canadian tariff on US steel also active. |
| Aluminum | Canada → US | 25% | Active | Section 232. Remission for aluminum used in manufacturing extended to June 30, 2026. |
| Automobiles (CUSMA-compliant) | Canada → US | 0% | Protected | CUSMA rules of origin apply. Must meet North American content requirements. |
| Canola seed | Canada → China | 15% | Partial relief from March 1, 2026 | Reduced from 75.8% provisional duty. Anti-dumping investigation ongoing. |
| Canola meal | Canada → China | 0% | Temporary (until Dec 31, 2026) | 100% tariff suspended March 1–December 31, 2026. Agreement in principle reached Jan 16, 2026. |
| Canola oil | Canada → China | 100% | Active — market effectively closed | Anti-discrimination tariff remains. Canola oil exporters should seek alternative markets (EU, US, India). |
| Softwood lumber | Canada → US | 10% | Active — Section 232 (Oct 2025) | New 10% global tariff on timber/lumber. No CUSMA exemption. Increase to higher rates delayed to Jan 1, 2027. |
| Peas (yellow/green) | Canada → India | 30% | Active | Significant market access barrier. Seek alternative pulse markets — Pakistan, Bangladesh showing demand. |
| Lentils | Canada → India | 10% | Active | Reduced impact vs peas. Exports still moving but at lower prices. |
| Most CUSMA goods | Canada ↔ US | 0% | Protected | CUSMA-compliant goods trade tariff-free. Must meet rules of origin. Steel, aluminum, and certain autos excluded. |
| CETA goods (most categories) | Canada ↔ EU | 0% | Active — 98%+ elimination | CETA eliminates tariffs on 98%+ of goods. Agricultural supply management sectors partially excluded. |
| CPTPP goods | Canada ↔ 10 partners | 0% phasing in | Active — phased elimination | Covers Japan, Australia, Mexico, Vietnam, Malaysia, Singapore, New Zealand, Peru, Chile, Brunei. |
Canadian manufacturers who use US steel or aluminum inputs may qualify for temporary tariff remission — reducing the effective cost of retaliatory tariffs on your inputs. Remission for steel inputs (manufacturing, food packaging, agriculture) extended to January 31, 2026 (now expired for most); remission for aluminum extended to June 30, 2026. Check canada.ca/tariffs-response for current status.
CUSMA / USMCA
Canada–United States–Mexico Agreement
CUSMA (called USMCA in the US and T-MEC in Mexico) is the successor to NAFTA, in force since July 1, 2020. It governs approximately 75% of Canadian merchandise exports. A joint review is scheduled for 2026.
CUSMA eliminates tariffs on most goods traded between Canada, the US, and Mexico. Key provisions: zero tariffs on qualifying goods, modern intellectual property protections, digital trade chapter (no data localisation requirements), labour and environment standards, government procurement access, and investor protections. Supply-managed sectors (dairy, poultry, eggs) have limited access through tariff-rate quotas.
Steel and aluminum are explicitly excluded from CUSMA tariff-free provisions — US Section 232 tariffs apply even to CUSMA-compliant goods. Softwood lumber has long-standing trade disputes outside of CUSMA. Supply-managed agricultural products face tariff-rate quotas. Some auto parts must meet strict rules of origin or face tariffs.
To qualify for CUSMA tariff-free treatment, goods must "originate" in the CUSMA region — meaning they must contain sufficient North American content. Rules vary by product. For manufactured goods, this typically means a Regional Value Content (RVC) test. For agricultural goods, the rules are generally simpler. The Trade Commissioner Service can advise on whether your specific goods qualify. A certificate of origin must be prepared by the exporter or producer.
The mandatory joint review of CUSMA begins in 2026. The US may seek to renegotiate rules of origin for critical minerals and electric vehicle battery content. Canadian critical minerals producers and auto parts manufacturers should monitor this closely — changes could affect tariff treatment of Canadian-processed minerals entering the US market.
CETA
Canada–European Union Comprehensive Economic and Trade Agreement
CETA has been provisionally in force since September 2017 and provides Canadian businesses with preferential access to the EU's 450 million consumers and €17 trillion economy. It is one of the most comprehensive trade agreements Canada has ever signed.
CETA covers: tariff-free access for most goods, government procurement (Canadian firms can bid on EU public contracts), services trade (including financial services, engineering, architecture), investment protection, intellectual property rights, regulatory cooperation, and mutual recognition of professional credentials in some areas. For agri-food, CETA provides enhanced access for beef, pork, seafood, maple syrup, and canola — though supply-managed sectors remain limited.
The EU's Carbon Border Adjustment Mechanism (CBAM) is being phased in from 2026. It applies a carbon price on imports of steel, aluminum, cement, fertilisers, electricity, and hydrogen — sectors where Canada is a significant EU supplier. Canadian exporters in these sectors will need to document the carbon emissions embedded in their products. CBAM does not eliminate CETA tariff preferences but adds a carbon cost layer. Canada's carbon pricing system may partially offset CBAM obligations — check with Global Affairs Canada for current guidance.
The EU AI Act is fully applicable from August 2026. It applies to any AI system sold or used in the EU — including Canadian companies selling software into EU markets under CETA. High-risk AI systems require conformity assessments, documentation, and registration. Canadian AI and SaaS companies exporting to the EU should begin compliance planning now. CETA's digital trade provisions do not provide an exemption from the AI Act.
CPTPP
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
The CPTPP connects Canada with 10 Asia-Pacific and Latin American economies covering 500 million consumers. It is Canada's primary tool for diversifying exports beyond the US and EU — particularly into the rapidly growing Indo-Pacific region.
Agri-food → Japan: CPTPP eliminates Japanese tariffs on Canadian beef (38.5% → 0% phased), pork, canola, wheat, and seafood. Japan is a premium market that values Canadian quality positioning.
Technology → Japan/Singapore: CPTPP's digital trade chapter covers cross-border data flows, electronic commerce, and source code protection — enabling Canadian SaaS and digital services companies to serve CPTPP markets without data localisation requirements.
Critical Minerals → Japan/Australia: CPTPP supports supply chain integration with Japan's battery and automotive industry and Australia's mining sector — key partnerships for Canadian critical minerals producers.
Agri-food → Vietnam/Malaysia: Growing middle-class markets with appetite for Canadian protein, canola oil, and processed food products.
Canada and Indonesia concluded CPTPP accession negotiations in December 2024. Indonesia — a 280 million person economy — joining CPTPP creates significant new opportunities for Canadian agri-food (wheat, canola, pulses), critical minerals (battery materials), and technology exporters. Indonesia was previously Canada's 11th largest export destination; CPTPP accession will reduce tariff barriers substantially. Full implementation timelines are being finalised.
Rules of Origin
Rules of origin determine whether your goods "qualify" for preferential tariff treatment under a trade agreement. Getting this wrong means your buyer pays full tariffs at the border. It is the most common compliance gap for Canadian exporters.
Each trade agreement has its own rules of origin — there is no universal standard. The rules specify how much of a product must be made or processed in the signatory countries to qualify. Generally: wholly obtained goods (agricultural products grown in Canada) qualify automatically. Manufactured goods must meet either a tariff classification change test (the product changes HS code during manufacturing) or a Regional Value Content (RVC) test (a percentage of the product's value must originate in the trade area). The Trade Commissioner Service provides free advice on whether your goods qualify.
1. Assuming CUSMA compliance because goods are manufactured in Canada — always check whether your inputs' country of origin affects the final product's qualification. 2. Not keeping documentation — you need to be able to prove origin if the importing country's customs authority requests it. 3. Missing the certificate of origin — most agreements require a declaration or certificate from the exporter. 4. Steel and aluminum inputs — these do not make your product non-CUSMA-compliant, but the steel/aluminum itself still faces Section 232 tariffs when it crosses into the US.
Programmes for Tariff-Affected Businesses
If your business is affected by current tariff situations, these programmes provide financial support and advisory services.
| Programme | What it covers | Maximum | Link |
|---|---|---|---|
| CanExport SME | Market diversification away from tariff-affected markets — trade show costs, market research, marketing materials | $50,000 | Apply → |
| AgriMarketing Program (SME stream) | Agri-food market development, targeting non-traditional markets. Especially for businesses affected by US or China tariffs | $100,000 | Apply → |
| AgriStability | Compensates for revenue declines of 30%+ due to market disruptions including tariffs. Cap doubled to $6M for canola producers | $6M cap | Apply → |
| EDC Buyer Financing | EDC finances foreign buyers to purchase Canadian goods — useful when buyers in tariff-disrupted markets need credit support | Varies | Contact EDC → |
| BDC Working Capital | Flexible financing to manage cash flow during tariff disruptions | Varies | Apply → |
| CUSMA Compliance Advisory (CCASI) | Free advisory services to help businesses ensure their goods comply with CUSMA rules of origin | Free | Contact TCS → |
Official Resources
Primary sources for tariff and trade agreement information. Always verify the current status of any tariff directly with the relevant authority before making business decisions.
This page is updated weekly, but tariff situations change fast. Our weekly intelligence reports track changes to CUSMA, CETA, CPTPP, and current tariff disputes — with sector-specific analysis of what each development means for Canadian businesses in your sector. See subscription plans →