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TRUMP'S NEW TARIFFS - NOT HURTING CANADA?

TRUMP TARIFFS DO NOT APPLY TO CUSMA GOODS

Much of the current commentary surrounding the new US tariff measures has overlooked a central point – namely, that broad-based US tariff actions do NOT apply to Canadian-origin goods that properly qualify under CUSMA.

There are certainly some exceptions like in militarily strategic sectors (like steel and aluminum) and in sensitive economic sectors (like automotives and lumber) but the wider narrative suggesting sweeping tariff exposure for Canadian exports to the US is probably overstated. We provide additional insight below.

What Tariffs Currently Affect Canada?

Canada has generally been subject to sector-specific US tariff measures, including:

• Steel and Aluminum – Section 232 tariffs impose 50% on steel and aluminum, including certain derivatives. The reason for these tariffs is to support the US steel and aluminum domestic industries, which are view (quite rightly) as militarily strategic.
• Copper – Section 232 tariffs impose 50% on semi-finished copper products and copper-intensive derivate, reflecting US concerns about supply security and domestic product capacity.
• Wood Products / Cabinets – Section 232 tariffs impose a 10% on softwood lumber and time and a 25% tariff on upholstered wooden products, cabinets and vanities. This is another industry in which the US has identified as crucial to its national defence and critical infrastructure products.
• Automotive – Section 232 tariffs impose 25% on vehicles and auto parts, with partial relief for CUSMA-qualifying content. The automotive industry has been viewed as being of national economic importance dating back to Reagan-era tariffs on Japanese autos.

How Will Trump’s 15% Global Tariff Affect Canada?

It is critical to recognize that Trump’s new 15% global tariff framework is directed primarily at “non-preferential” imports – namely, imports to the US that are not already covered by trade agreement.

What this means is that CUSMA-qualifying goods exported to the US by Canadian businesses should remain exempt of the new global tariff structure as per section 14(l) of President Trump’s presidential proclamation of February 20, 2026.

Accordingly, Canadian goods that are manufactured or sufficiently produced in Canada and exported under the CUSMA preferential regime will NOT be subject to any duties in the US and will be FULLY EXEMPTED from the 15% global tariff!

Are My Goods CUSMA Compliant?

CUSMA’s Rules of Origin are designed to preserve North American manufacturing. Businesses producing goods in Canada and meeting those origin thresholds should continue to benefit from duty-free treatment.

Now comes the hard part: determining CUSMA qualification. One generally finds that a proper and legally defensible CUSMA certification will require:

• Review existing certificates
• Mapping inputs and supply chains
• Applying product-specific Rules of Origin

While these rules are detailed and technical, Experienced International Trade Counsel can be leveraged by businesses to establish and maintain defensible origin positions.

For help with CUSMA Certifications of Origin, please click here.

Download a PDF copy of this Blog here.